Marketing Essentials: McDonald's Marketing Plan and Analysis

This report provides a comprehensive analysis of McDonald's marketing strategies, focusing on the roles and responsibilities of the marketing function within the organization. It delves into the key aspects of marketing, including identifying market trends, building customer relationships, and analyzing customer preferences. The report examines the elements of the marketing mix, such as product, price, place, promotion, physical evidence, process, and people, comparing McDonald's strategies with those of its competitor, Burger King. Furthermore, it outlines a basic marketing plan for McDonald's, covering market research, target audience identification, and promotional strategies. The report also explores the interrelationship between the marketing department and other departments within McDonald's, such as operations, finance, HR, sales, R&D, and IT, highlighting the importance of cross-functional collaboration for achieving marketing objectives. The report emphasizes the importance of quality, customer satisfaction, and effective marketing tools to achieve business success.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Roles and responsibilities of marketing function.................................................................1
P2: Roles and responsibilities of marketing related to organisational context...........................4
TASK 2............................................................................................................................................5
P3: Compare ways to use elements of marketing mix................................................................5
TASK 3............................................................................................................................................8
P4: Basic marketing plan............................................................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
` Marketing is an essential need of every organisation due to which the company can able
to gain strong identity and become more popular in market which attract and influences interest
and buying behaviour of customers. It is an effective tool which help company in reaching to the
maximum number of customers and inform them about the quality and benefits of products and
services. It includes various activities such as identifying market trends, building relationship
with customers, identifying and analysing the needs and preferences of customers, developing a
strategy through conducting research and on the basis of which products and services has been
sold out to maximise the level of satisfaction of customers (Bačík, Štefko and Gburová, 2014).
The present assignment report is based on McDonald's which is a fast food restaurant provides
multiple number of food and beverage products such as hamburgers, French fries, cheese
burgers, soft drinks and many more. McDonald's is one of the known and largest chain of fast
food restaurants throughout the world. The project covers the roles and responsibilities of
marketing functions as well as elements of marketing mix which must required to adopt by
management of an organisation. Basic market plan of McDonald's has been also discussed under
this report. All such aspects are explained under this report with the context of McDonald's.
TASK 1
P1: Roles and responsibilities of marketing function
Marketing: It is an activity of promoting products and services with an objective of
attracting and influencing the interest and buying behaviour of customers throughout the world.
It is an effective way of telling customers about the information and advantages of products and
services offering by an organisation.
Therefore, the marketing managers of McDonald's are held liable to make an effective
marketing planing and decision in order to reach to the maximum number of customers across
worldwide. For this, marketing managers need to perform roles and responsibilities which are
briefly described as under:
 Identifying the marketing trends related with food products and services through
conducting research.
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 Fixation of price of food products and services after analysing their rivals' pricing
strategies which help McDonald's in retaining loyal customers for longer period of time
(Brown, McDonagh and Shultz II, 2013).
 Adoption of an effective marketing tools and techniques in order to grab an attention of
large number of customers. Such marketing tools includes online advertising, TV
advertisement, print media etc. through which the customers are informed about the
discounts, coupons etc. offered by McDonald's.
Therefore, all such activities need to be performed by marketing manager of McDonald's in order
to achieve huge customer strengths and generate huge revenues. It also contributes maximum in
building healthy relationship with their loyal customers and retain them for longer period of time
through giving the special discounts, coupons etc.
About McDonald's:
It is an American fast food company which has operated its business in more than 100
countries with the help of their 36900 outlets. The company has offering multiple varieties of
food products such as chicken products, cheeseburgers, soft drinks, French fries etc. thus known
for its hamburgers. McDonald's is one of the largest restaurant chain on the basis of the revenue
generated every year. In 2016, the company has generated approx. $24.622 billion as revenue.
McDonald's has served over 69 million customers on daily basis and has attained over 375,000
employees.
Roles and responsibilities of marketing function
There are various roles and responsibilities of marketing related function given as below:
Product: It refers to a substance which is produced by company with an objective of
fulfilling the needs and requirements of market. Focusing on quality is important as it easily
attracts large number of customers. McDonald's is known for their quality thus has attained huge
customers strengths. It is important for company to conduct market research in order to find out
the taste and preferences of customers and accordingly make changes in the menu card so as to
influence the buying behaviour of customers (Campbell and Martin, 2015).
Selling: It is also important part of marketing functions in which different marketing
strategies has been formulated in order to enhance the sales figure of the company. The main
focus of marketing manager is to adopt an effective distribution channels through which they can
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easily provide products to their customers. For example, Conducting research in order to find out
the best location of opening outlets helps in increasing sales of company.
Pricing: Pricing factor play an important role in influencing interest and buying
behaviour of customers thus need to be set an effective price which maximises their satisfaction
level. There are different types of customers on the basis of which pricing strategies need to be
formulated, Customers having higher income gives more preferences to quality instead of price
whereas middle income group people give more preferences to prices first before quality.
Therefore, in order to attract all income groups the management of McDonald's need to set an
effective price after analysing the rival's strategies and buying behaviour of customers (Desai,
2013).
Promotion: IT is an effective tool which help customers in gaining knowledge about the
products and services of an organisation. The marketing department is responsible to make an
effective marketing plans and strategies in order to inform customers about the quality and price
they are charging for their products and services offerings. Marketing tools includes social
media, online marketing, TV advertisement, campaigns etc. which grabs an eye of maximum
number of customers.
Marketing information system: Such system help company in providing relevant and
accurate information about customer's interest, actions, preferences and buying behaviour. Thus,
help management of McDonald's in making an effective decisions and plans to fulfil customer's
requirements. Using MIS, information of marketing is gathered, properly analysed, stored and
then allocate to managers in order to make further actions and plans.
Financing: It is the backbone of company which gives adequate support in implementing
an effective tools and techniques. Therefore, it important for an organisation to have adequate
amount of funds so as to adopt an effective and advanced technologies in the marketing as well
as production process. The marketing manager are responsible to prepare budget and allocate
funds in different areas on the basis of their effectiveness (Douglas and Craig, 2011).
Distribution: It is also an important part of marketing functions which help company in
attaining huge customer base. Conducting research regarding finding out the best place for
opening their new outlets in order to increase in the number of their loyal customers. For
example, In UK, London is an appropriate place where large number of visitors are visited every
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year therefore opening outlets in such place will help in increasing the sales figure of
McDonald's as well as generate huge profits every year.
P2: Roles and responsibilities of marketing related to organisational context
Marketing department mainly perform their roles and responsibilities in order to help
company in attaining huge customer base due to which they need to get support from other
departments of an organisation through which they successfully achieve its objectives. Marketing
concept includes promotion, sales, marketing and delivering products to the customers in most
effective way. Through marketing strategy, their main objectives to attract customers towards
company's products and build healthy relationship with them in order to retain them for longer
period of time. It directly makes positive impact on the company's sales and revenue as well. For
this, research shall required to be conducted in order to identify the taste and preferences of
customers on the basis of which the management make changes related to their products and
services (Eslinger, 2014). Along with the marketing department, there are other departments as
well which gives equally support to the company in achieving growth and success. The managers
of different departments shall required to give support to each other department in order to
achieve desired goals and objectives of McDonald. The interrelationship of the marketing
department of McDonald with others departments are explained under the below:
Marketing department with operational: Operation department is responsible to arrange
raw materials from the suppliers and utilise them in production process in order to manufacture
quality products. Proper coordination between marketing and operation department help in
executing production activities in an effective and efficient manner. As through conducting
research, marketing department of McDonald provided sufficient information regarding
demanded products and services in market which directs the operation department to focus on
producing such demand products in order to meet customer's requirements. This will help in
satisfying the customers in an optimum manner.
Marketing department with finance: All departments of McDonald required to get
support from finance department in the execution of business activities in an effective and
efficient manner. The manager of finance department is responsible to prepare budget report and
allocate funds to each department according to their requirements. With the help of support of
finance department, the marketing manager are able to make an effective marketing plans and
adopt marketing tools and techniques in order to promote their products and services.
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HR Department with marketing function: HR Department of McDonald are liable to
recruit skilled and knowledgeable employees with an expectation of getting maximum support
from them in achieving desired goals and objectives. Conducting training and development
programs, giving performance appraisal, better policies etc. helps in bring motivation and
confidence among employees which in results achieving productivity. In order to recruit skilled
and qualified employees, HR department need to take help from marketing department in order
to advertise vacant job position so as to attract large number of applicants to apply for the job.
This will brings lots of options among HR manager to recruit skills and knowledgable employees
(Gummesson and Grönroos, 2012).
Sales function and marketing function: The main responsibility of sales department of
McDonald is to increase the sales figure of company and generate huge revenues. This can
achieved when the marketing department contributes maximum efforts in influencing interest
and buying behaviour of customers through adopting an effective marketing tools and
techniques. It will help McDonald in achieving huge revenues and profits.
Marketing department with R&D: The research and development team of McDonald is
responsible to conduct research in order to identify the needs and preferences of customers and
according direct marketing department to communicate with their customers in order to provide
relevant and accurate information about the products and services offered by McDonald along
with the price they charged.
IT Department and marketing department: The marketing department of McDonald
before adopting marketing plans and policies, need to take support from IT department in order
to find out the information about the targeted customers so that an appropriate marketing
strategies has been formulated. Management information system (MIS) is an effective system
which is more helpful in storing data and information about employees, customers etc. on the
basis of which targeted customers are identified and make suitable plans to attract them.
TASK 2
P3: Compare ways to use elements of marketing mix
Marketing mix refers to an actions or tactics which a company used to promote their
brand or product in the market. It includes 7P's which consists of product, price, place,
promotion, physical evidence, process and people (Hsu, Hsu and Yeh, 2010). These all
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components need to be thus considered in order to make an effective marketing plans and
decisions which help McDonald in achieving desired goals and objectives. Under this, there is
the comparison of marketing mix of two rivals companies such as McDonald and Burger King.
Both are engaged in similar sector thus giving tough competition to each other.
Marketing mix of McDonald:
Product: McDonald is one of the largest fast food restaurant which is known for their
quality in market thus attained strong brand image in market. The company deals in offering
multiple variety of products including sandwiches, burgers, desserts, drinks and many more.
Their main focus is to provide nutritional and healthy food products in order to maximise the
satisfaction level of customers.
Price: McDonald charged for the quality thus can easily attracts lots of customers across
worldwide. As providing multiple number of food products and beverages, McDonald mostly
attracts higher income group due to their price of products and services. Adopting an effective
pricing strategies help company in retaining loyal customers for longer period of time.
Place: McDonald has attained over 36,528 restaurants in more than 119 countries due to
which the company has capturing large market share. The main aim of the company is to attain
strong presence in urban as well as rural areas. McDonald always search better location where
they get maximum crowd (Malhotra, Birks and Wills, 2013).
Promotion: It is important for management of McDonald to make an effective marketing
plans and decisions in order to provide information about the products and services along wit
their benefits so as to attract large number of customers and motivate them to visit at their
outlets. Promotional tools includes hoardings, television, social media etc. which grabs an
attention of large number of customers throughout the world.
Process: The process of producing quality food products and services is transparent to
customers thus can easily be visible to customer due to which their brand products are more
reliable and trustable. McDonald has invested more in conducting research. The firm adopts new
methods of distribution as well as packaging on regular basis.
People: The employees of McDonald are more educated due to which they know how to
treat customers t their outlets so as to maximise the satisfaction level of customers. The
environment of outlets is much friendly which brings interest of customers to visit at their outlets
at once.
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Physical evidence: McDonald can be easily recognised by their outlets in market
through due to having strong brand image. Due to this, the customers are easily attracted to visit.
Due to having attracting design and structure of outlets, maximum number of customers visited
every year.
Marketing mix of Burger King
Price: Burger King mainly focuses on attracting middle income group due to which they
charged an affordable prices on the products and services they offered in market. Adoption of
cost leadership strategy help company in achieving huge customer strengths (Martin, Campbell
and Harmsen, 2014).
Product: Burger King deals in offering similar products as compared to McDonald such
as desserts, French fires, sandwich and many more. In order to give tough competition with
McDonald, Burger King offered combo meals and packs at discounted rate. In addition with this,
Burger King also focuses on maintain quality of products so as to maximise the satisfaction level
of customers.
Place: There are number of outlets located at various countries such as Taiwan, Japan,
India, South Korea etc. Burger King has attained 13000 outlets in more than 79 countries due to
which they are given face tough competition to McDonald.
Promotion: Promotional strategies is depended around revitalising and reorganising
concept due to which the company has sustain in market for longer period of market.
Communicating with customers about the price, quality, variety of food items etc. help in
grabbing an attention of customers across worldwide.
Process: Burger King produces quality and healthy products to customers in order to
increase the healthy lifestyle of customers. The company has maintained work culture, taste,
supply chain etc. and continuously introduce new food items as well in order to attain huge
customer strengths.
People: The main focus of Burger King is to trained their employees so as to deal with
customers having different cultures and backgrounds in more effective and efficient manner. It
enhances quality in work which brings good image in front of the customers. Conducting
training and development programs on regular basis help in enhancing the skills and knowledge
of employees.
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Physical evidence: Burger King has operates its business in more than 15000 locations in
over 71 countries thus they make their strong presence in developed countries. The firm has
always focused on expanding business to other countries as well such as India.
TASK 3
P4: Basic marketing plan
Marketing plan is an important part of business plan in which a blueprint is created in
order to provide right direction to their employees of marketing department to perform allotted
roles and responsibilities in an effective and efficient manner. Suitable plan is essentially
required to made in order to execute further marketing activities in such an effective manner that
will help company in achieving desired goals and objectives. Along with this, it is essential for
marketing manager to first determine vision, mission, aims of company before deciding to make
an effective marketing plan. Such marketing plan should be made in systematic manner which
further help in execution of business activities in more profitable way. The marketing plan of
McDonald are briefly given as below:
Company Background
McDonald is one of the largest restaurant chain in USA which was firstly founded in the
year 1940 by Richard and Maurica McDonald. It has been generated huge revenues every year
due to which attained strong brand position in market. It offers multiple number of food products
such as milkshakes, desserts, chicken products, breakfast goods and many more (Perreault,
2010).
Vision
The vision statement of McDonald states to become modern and progressive burger
company to enhance the experience of customers. The company has main focus is to deliver
quality and tasty food to their customers and providing them a world class experiences that
makes them feel welcome and valued.
Mission
The mission of McDonald is to become favourite place of customers where they can eat
and drink. The mission statement statement also includes positive presence in community,
delivering quality, service and provides value to customers.
SWOT Analysis of McDonald
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Strengths Weaknesses
 Attained strong brand image in
competitive market.
 Competitive prices
 Know for providing quality products.
 Attaining huge customer base
 Healthy and clean environment at their
outlets.
 Continuously decreasing in market
share.
 Income and profit of McDonald grow
on slowly basis.
 Disgruntled franchisees.
Opportunities Threats
 Expand business to developed
countries.
 It can serve 1% to the population of
world.
 Need to merge with small retailers in
order to expand its business operations.
 Health conscious people generally
ignore to consume fast food products.
 Decrease in economy affects the
growth of McDonald.
 More fluctuation in the foreign
exchange rates of country.
 Changing in demographics.
 High competition.
STP of ALDI
Segmentation: Under this, market is divided into demographic, psycho-graphic and
Behavioural and Geographic segmentation.
Demographic: Such segmentation is classified on the basis of variables which includes
age, gender, family, income, religion etc. As McDonald charges higher prices for offering quality
food items thus focusing on attracting higher income group (Vanhamme and et. al., 2012).
Psycho-graphic: Such type of segmentation is divided population on the basis of lifestyle
of people, interest etc. For example, Having higher income group mainly prefer to visit at their
outlets.
Behavioural: Such type of segmentation classified the population on the basis of
behaviour and decision making pattern. For example, Children and young people are always
prefer to visit at such places thus need to focus on their needs and requirements.
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Geographic: Such type of segmentation is divided into population on the basis of
geographical locations. In UK, London city are more preferable location to open new outlets.
Targeting: The main targeted customers of McDonald are children, young people who
shows more interest in visiting at their outlets on regular basis.
Positioning: It refers to the market position at which the company sees itself. McDonald
has attained its own position in market which can be easily recognised by markets from their
outlets located at different countries.
Marketing mix of McDonald
Product: McDonald deals in offering multiple range of food products and services which
includes chicken products, hamburgers, soft drinks, desserts and many more. It also offers
smoothies, fish wraps and salads.
Price: The interest level and buying behaviour of customers depends on the pricing
factors thus need to be formulate an effective pricing strategies in order to attract all higher
income groups.
Place: The restaurants of McDonald are locates at various places due to which they
capture large market share. In order to expand business, the management need to expand their
business through locating at different places where they get more crowd (Marketing Structure,
2010).
Promotion: McDonald has generated huge revenues every year thus attained huge
amount of resources. With the help of this, various promotional tools and tactics are easily
adopted by company due to which the company has attracted large number of customers. Such
tactics includes advertisement, direct selling, sales promotion and public relations. Among such
tools, advertisement is most effective tool which help in grabbing an attention of large number of
customers. Online, print media, television etc. are other tools through which they can
communicate customers regarding the information about the products.
Marketing strategy:
It plays significant role in developing business of McDonald. Thus essentially required to
be made by the management of McDonald. It is essential for McDonald business firm to develop
marketing activities or process. In regards to this, relationship marketing is an suitable option
through which they can able to maintain strong position in market.
Financial Projection of McDonald
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Income statement All numbers in thousands
Revenue 31/12/17 31/12/16 31/12/15
Total revenue 22820400 24621900 25413000
Cost of revenue 12199600 14417200 15623800
Gross profit 10620800 10204700 9789200
Operating expenses
Selling general and
administrative 1068100 2460200 2643700
Operating income or
loss 9552700 7744500 7145500
Income from continuing operations
Total other
income/expenses net -57900 6300 48500
Earnings before
interest and taxes 8573500 6866000 6555700
Interest expense - - -
Income before tax 8573500 6866000 6555700
Income tax expense 3381200 2179500 2026400
Net income from
continuing ops 5192300 4686500 4529300
Non-recurring events
Net income
Net income 5192300 4686500 4529300
Net income
applicable to
common shares 5192300 4686500 4529300
Execution
In this, all above steps need to be executed in an effective and efficient manner so as to
achieve best possible outcomes. With the help of these steps, firm can required to formulate an
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effective plans and strategies for the proper execution so as to as achieve desired goals and
objectives. It helps McDonald in achieving stable position in marker for longer period of time.
Evaluation
It refers to an examination of all business activities which are going to be performed in
future in order to achieve better possible outcomes. It includes different methods which are as
follows:
Sales analysis: Under this, the sales figure of company are analyse in order to find out
the effectiveness of marketing plan.
Market share analysis: It is concerned with study of market in order to identify where
such marketing plan help company in achieving large market share or not.
Efficiency Ratios- Asset Turnover Ratio- Revenue (Sales)/Net Assets
Cost-Profitability Analysis: It consists an profit examination in addition to costs. It
displays gap between sales as well as cost.
CONCLUSION
It has been concluded from the above project report that marketing is an important
element which support an organisation in achieving strong brand position in market. Therefore,
the management of McDonald need to focus on adopting various marketing tools and techniques
that will help them in attaining huge customer strengths. It builds healthy relation with the
customers through which the company can able to retain them for longer period of time.
Marketing plans are also required to be made in order to execute marketing activities in more
effective and efficient manner.
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<http://www.bbmms.org/2010/01/organisation-of-the-marketing-department/>.
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