University Marketing Report: McDonald's Strategies and Analysis

This report provides a comprehensive marketing analysis of McDonald's, examining various aspects of its business strategies. It begins by identifying channel conflicts within McDonald's distribution and supply chains, particularly those arising from the introduction of fresh beef. The analysis then delves into McDonald's branding strategies, highlighting how innovation and fresh ingredients are used to attract customers. The report also explores McDonald's promotional pricing tactics and their impact on sales. Furthermore, it discusses how service levels are affected by factors like customer demand and potential food safety issues. The report examines McDonald's use of advertising and entertainment, such as the McDelivery service and celebrity endorsements, to enhance its brand image and reach a wider audience. The report also discusses the product life cycle stage of McDonald's, branding, and the criteria that McDonald's should focus on to meet the demands of the customers and maintain market standards. The report concludes by assessing the company's ability to adapt to market changes and customer expectations, emphasizing the importance of understanding market potential and customer needs to achieve maturity. The report uses the innovative 'Frork' utensil as an example of a new product. Finally, the report recommends strategies for continued growth and customer satisfaction.

Running head: MARKETING
Marketing
Name of the Student-
Name of the University-
Author note-

1MARKETING
1.
The channel conflicts that are occurring at MacDonald’s point towards the conflicts and
the disputes amongst the various channels. McDonalds is facing the channel conflict of
distribution channel conflict. This refers to the conflict that is faced in the various distribution
channels of McDonalds. McDonalds also faces the channel conflict of supply chains. This refers
to the manner in which conflicts arises in the various supply chains because it refers to the
process of product distribution to the market. The supply chain is affected by the inculcation of
the supply of fresh beef (Peterson 2017).
2.
The marketing strategy of branding helps McDonalds in attracting customers to spend
their money on the food products. Branding helps McDonalds to increase the customer base. The
concept of ‘branding’ in McDonalds is also accompanied by the inclusion of innovation. It can
be seen that the food giant strives to increase the customer base by including innovative change
to the burgers (Peterson 2017). As a brand, McDonald has decided to include fresh beef for the
burgers. With the usage of fresh beef, the brand can promote its image and attract customers to
spend their money for the business organization.
3.
McDonalds is utilizing the aspect of promotional pricing. It is using the promotional
pricing strategy to regain the fall in the sales (Lovemoney.com 2017). It is using the promotional
pricing to reduce the price to attract and increase the customer base. It is seen that promotional
pricing is being used in McDonalds to increase the sale of the Signature Crafted Recipe

2MARKETING
Sandwiches (Whitten 2017). The price of the sandwiches have been kept low to promote the
products.
4.
The service level of McDonalds can be affected by the inability to meet the increased
demands of the customers (Peterson 2017). The service can also be affected by the food borne
diseases due to fresh beef items. The franchisees are also concerned about the marketing channel
that is related to the promotion and marketing of these revamped products to the customers in the
future.
5.
McDonalds is using a merger of advertising and entertainment. For instance, in order to
generate the required consumer base, McDonalds has incorporated the idea of advertising the
McDelivery that is implemented in collaboration with UberEats (Greggs 2017). Celebrities
advertising the ‘All Time Breakfast’ has led to the increase in the sales of the products. It also
leads to the generation of entertainment.
6.
A closer examination of the articles will project that the articles strive to endorse a
service rendered by the burger giant McDonalds. The food delivered and provided by
McDonalds are the form of services that they provide to the customers. The articles also
emphasize upon the prompt service delivered by McDonalds in order to satiate the needs of the
customers. In order to enhance the services, the organization has decided to include innovative
products (Lovemoney.com 2017). The articles endeavor to argue that the customer service of
McDonalds plans to accentuate by concentrating on innovative food products that includes the

3MARKETING
usage of fresh beef. In order to match to the competitive nature of the market, McDonalds has
decided to incorporate McDelivery while collaborating with the food delivery giant, UberEats
(Greggs 2017). The articles strive to endorse and market a food service that is dedicated towards
the idea of customer satisfaction.
7.
d
Fig 1: Three levels of Product: Core, Fresh, Innovative
(Source: As created by author).
8.
McDonalds is at the product life cycle stage of growth. Having established a hold over
the market, McDonalds is now at the growth stage where it is inculcating innovative products to
cAVCC
Customer
Value
Fresh product
Product
Brand
Value Price
Innovative Food Product
Food Delivery and Promotion

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achieve growth in the market. The growth is due to the increase in the sales and the inculcation
of innovative product ideas (Whitten 2017). The growth stage of McDonalds is due to its ability
to attract customers .In order to move to the stage of ‘maturity’, McDonalds should incorporate
proper understanding of the market potential to increase the brand image and promotion. To
reach the maturity stage, McDonalds should emphasize on understanding the various needs of
the customers.
9.
The ‘new to the world’ product is the ‘Frork’ utensil of French Fries.
10.
The criterions are:
1) McDonalds should meet the demands of the customers.
2) McDonalds should meet the market standards of the quality of the food served to the
customers (Lovemoney.com 2017).
3) The market potential for fresh beef should meet the criteria of the inclusion of healthy
and unhampered food.
4) McDonalds should meet the criteria of serving food at a reasonable price.
5) McDonalds should meet the criteria of accentuating brand promotion strategies such as
‘All Time Breakfast’ and ‘McDelivery’ for the customers.

5MARKETING
References
Greggs, G. (2017). Here's How to Get Free McDonalds Swag Like Chrissy Teigen. [online]
Celebuzz. Available at: https://www.celebuzz.com/2017-07-26/chrissy-teigen-handing-out-
mcdonalds-swag-leads-todays-star-sightings/ [Accessed 10 Mar. 2019].
Lovemoney.com (2017). How McDonald’s is winning the burger battle again | lovemoney.com.
[online] Lovemoney.com. Available at: https://www.lovemoney.com/gallerylist/64062/how-
mcdonalds-is-winning-the-burger-battle-again [Accessed 10 Mar. 2019].
Peterson, H. (2019). McDonald’s is testing one of its most 'dramatic' menu changes in decades.
[online] AOL.com. Available at: https://www.aol.com/article/finance/2017/03/16/mcdonald-s-is-
considering-a-dramatic-change-to-its-burgers/21898576/ [Accessed 10 Mar. 2019].
Whitten, S. (2017). McDonald's invents a Frork made of French fries. [online] NBC News.
Available at: https://www.nbcnews.com/business/consumer/mcdonald-s-invents-frork-utensil-
made-french-fries-n753306 [Accessed 10 Mar. 2019].