Comprehensive Marketing Report: McDonald's Strategies and Analysis

This report provides a comprehensive analysis of McDonald's marketing strategies. It begins by outlining the roles and responsibilities of the marketing function within the organization and in the broader context of the company. The report then delves into the marketing mix, exploring the 7Ps (Product, Place, Price, Promotion, People, Process, and Physical Evidence) as applied by McDonald's, and includes a comparative analysis with Burger King. Finally, the report constructs a marketing plan for McDonald's, integrating the concepts discussed and aiming to enhance customer satisfaction and achieve business objectives. The report also covers marketing concepts like production, product, selling, and societal concepts, as well as the functions of marketing such as MIS, pricing, product and service management, distribution, finance, selling, and promotion.

MARKETING ESSENTIAL

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and responsibilities of marketing function..............................................................1
P2 Role and responsibilities of marketing in context with wider organisation......................3
TASK 2............................................................................................................................................5
P3 Marketing mix which is followed by McDonald's............................................................5
P4 Marketing plan for McDonald's........................................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing is a fundamental tool which is used for creating and satisfying the customers.
It can be said as a process which communicate, deliver and exchange offerings which have a
value for consumers. McDonald's is a big fast food company which is serving it food items all
over the world. In this report, researcher will include marketing strategies of McDonald's in
order to satisfy customer's needs and wants. The main objective of the file is to identify and
evaluate what kind of marketing techniques the company is following so that they can get
maximum benefits (Anderson and et. al., 2014). Apart from this the assignment is divided into
three task; first tells about the roles and responsibilities, in second part research has explained
various concepts by which marketing mix can be applied and in the last task marketing plan has
been mentioned.
TASK 1
P1 Roles and responsibilities of marketing function
Marketing concept: Under this study company tries to analyse the needs and wants of
their customers so that they can work accordingly. McDonald's is using marketing concept in
order to provide excellent services to their consumers all over the globe. This help the
organisation to build a good image in front of their buyers. Below there are some of the
marketing concepts which has been adopted by McDonald's so as to enhance their business:
The Production Concept: In this company tries to utilise all the resources which are
available to them so that they can make the product economically stable. For this McDonald's are
formulating strategies by which they can reduce wastage and gain more and more profits.
Through this McDonald's is producing goods systematically and gradually this has increased the
efficiency of performing the task.
Product Concept: Under this concept McDonald's is trying to produce goods as per
customer's need and satisfaction so that they can win loyalty of their consumers. Company
should make changes as per the present market situations on a regular basis in order to attract
more and more people towards their organisation. They must take reviews and feedbacks from
their customers so as to improve their product if required (Brychkov and Domegan, 2017).
Selling Concept: This is one of the important element which every company for this they
should make new marketing strategies by which McDonald's can sell their products.
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Organisation can use different tools and techniques for selling their commodities like internet,
social media sites, online websites of their own company and many more.
Concept related to marketing: Marketing a product so as to provide information to
consumers in a larger number related to goods and services is very essential. It requires an
appropriate plan and strategies in which all the concept and process of marketing should be
included. Basically it focusses on the concept by which they can satisfy the needs and wants of
their consumers.
Concepts related to Society: In order to get long term benefits McDonald's should
produce food items as per the taste and preferences of the people of a particular area. For this
managers of company should go through the likes and dislikes of persons living there.
Role of marketing:
This is a vital apart for any company, in order to build a healthy relation with their
customers. McDonald's uses various marketing strategies so as to sell their products in respective
areas. This includes how a company uses different marketing tools for promoting their
commodities. Thus, the main aim of the company is to increase sales and provide better services
to their consumer. It enable them to have a healthy competition with rival firms who are selling
the same products (Bryson and Daniels, 2015).
Functions of Marketing:
MIS(management information system): This helps an organisation for utilising
information related to customers preferences so as to increase their business operations. It
includes obtaining and managing activities for getting appropriate outcomes which will assist
them in decision making and giving better performance in order to achieve their set goals and
objectives.
Pricing: This is one of the essential element which company should keep in mind before
introducing product. They should fix the rates as per the market scenarios so that every people
can afford. Not too high and not too low, price must be moderate in nature.
Product and service management: Under this company tries to make new improved
designs in order to meet all the requirements of customers. Thus, McDonald's is focussing on
implementing new products which interesting flavours so that it can attract more and more
people.
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Distribution: Company should establish their business in such places from where they
can get maximum profits. McDonald's is maintaining a decent network of distribution for
delivering food items in various places.
Finance: For producing more and more products it is necessary that company is having
sample amount of money for buying material which is required for production process. If the
resource are not appropriate than it can have a negative impact on their business operations like
decrease in sales and productivity.
Selling: Under this company can utilise various tools so that their product can be reached
to maximum number of people. Providing better services to their consumers is helping
McDonald's to establish a healthy communication with their buyers.
Promotion: In this company tries to inform their customers about the fresh products
which they have introduced. This helps company in increasing its sales as it will attract more and
more people towards their organisation.
P2 Role and responsibilities of marketing in context with wider organisation
In case of McDonald's various activities are performed by different department so as to
carry out their function in a proper way. Further it can be linked with various marketing
strategies so that a relationship can be established with all the departments and some of them are
explained below:
Production: For having a better production it is important that company should know the
current market scenario with the help of which they can manufacture new goods. Knowing
customer's preference will aid them in producing products in a better way.
Research and development: This is a department in which company tries to identify the
customer's taste so that they can produce goods as per their preferences. This will provide them
with better outcomes and results through which they improve their brand image in market area.
Thus, this department provides them with an idea or an overview which McDonald's can follow
before establishing their firm in an particular areas (Cornwell, 2014).
Administration: It is the department that helps an organisation to manage their work in a
systematic way so that company doesn't face any problem. Administration assist them in
distributing the work in respective departments who are capable of performing the task in
appropriate manner. Hence, their prime role is to give an individual with specific roles and
responsibilities according to the capabilities so that they can perform their work effectively.
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Customer services: For getting a better outcomes it is necessary for McDonald's to
provide good customer service to their consumers by which they can fulfil their needs and
demands. They tries to follow reviews that is provided by the consumers for the same. Thus,
McDonald's is using all latest tools and technologies in order to revert their customers with best
possible solutions for the queries they have asked.
Finance: This department helps in promotion activities as it provides finance to
particular sector. Thus, it aid company in fulfilling all the requirements which important for
manufacturing products. Finance department tries that all the function is carried out in a proper
way with out any hindrance. The department also ensures that money which is provided by them
is being utilised in a proper manner.
Human Resources: This department plays a prominent role in any company as they
handle the recruitment process from where they can select suitable candidates for their job. HR
department choose eligible individual who are creative and can help their company in
implementing new strategies. McDonald's have achieved their desired goal through this process
as human resource department has provided them with candidates who fits best for the job. In
every company their role is very important because they are the one who provide new employees
with training programmes by which they can increase their existing skills and knowledge.
Information Technologies: With the advancement of the society, various companies are
also enhancing by implementing different tools and techniques in their organisation so as to get
better outcomes. Advance tools and techniques is helping them in sustaining their position in
market area. They are using various sites for promoting their products for example: internet,
online source, social media sites and many more.
Marketing: This department mainly handles promotion activities of any organisation.
They look out for different marketing strategies which they can apply for best results. Therefore,
this aid them in enhancing their business operations in better way. Other than this they includes
various activities for attracting more and more people towards their company (Kazmi, 2017).
Sales: This department can be directly linked with sales as they make plans considering
the market shares and values of the organisation. With the help of this they can decide one price
by for which supervisors can agree. Thus, they must apply the prices which are reasonable and
every person of different sector can afford without any difficulties.
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From the above mentioned points, it can be concluded that McDonald's have adopted
various marketing operations which is providing them maximum benefits related to their sales
and productivity.
TASK 2
P3 Marketing mix which is followed by McDonald's
Marketing mix can be said as a combination of certain actions that company adopts for
having better results form their business operations. This includes certain strategies, plan and
tactics which they apply for enhancing their firm in different areas. Thus, it can be said as the
foundation term for marketing mix and termed as one of the most attractive aspect as it provides
them with better results (Kennedy and Parsons, 2014). Other than this it includes 7Ps of
marketing which is used for making strategies. Some of these are mentioned below:
Source: Marketing Mix, 2017
Product: McDonald's is one of the renowned company is terms of selling food items all
over the world. They have a large chain that supplies products like burger, French fries, various
kinds of sandwiches etc., apart from this they sell their commodities with other items like cold
drinks, beverages, sides and much more.
Place: Currently the company is has around 36,900 stores world wide in which
approximately 375,000 workers are working. Hence, they have able to captured a large number
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Illustration 1: Marketing Mix

of market area in urban or rural as well. They are trying to establish good quality of restaurants
in highways, malls and colleges.
Price: For a common rates which they can apply it is necessary that they follows
leadership business strategies. This will aid them in deciding the price of a commodity that every
one can agree. For example: the cheapest rate of one burger is around USD5 which is very low at
cost and is affordable as well (Lock, 2014).
Comparative analysis of 7Ps of marketing of McDonald's and Burger King
Basis McDonald's Burger King
Product Before introducing their
product in the market area they
have done detailed study of the
behaviour of customer living
in different areas in order to
produce goods which are
according to the consumer's
preferences.
Burger king is one of the rival
company that manufactures the
same products as McDonald's.
They are selling items like
hamburgers with number of
varieties, along with this they
provide coke to their
customers. They change their
items which are mentioned in
their menu card on a regular
basis so as to increase their
demand in market area.
Price They have adopted various
strategies before fixing price
of any commodities. They
have fix the rates by keeping
all the aspects in their mind
like class, age group of the
people etc., apart from this
they are providing offer to
their customers like combo
meal, happy meal for kinds,
Burger king is using various
pricing strategies for giving
tough fight to rival companies.
They are monitoring the price
which has been implemented
by other organisation so as to
know the behaviour of
customers about how much
they are willing to pay for any
products.
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family meal and many more.
Place As this is one of the renowned
company and have stores in
various areas. They have
established their business in
targeted market areas from
where they can get maximum
profits. For this they are
emphasising more on
promotional activities for
promoting their products in
various areas.
Currently its outlets are
available in all over the world
and for expanding their
business they are collaborating
with many organisation and
franchises in order to increase
their sales and productivity.
Promotion This is the basic function of
marketing as in this company
tries to promote their product
using various tools and
techniques so that they can
reach to maximum number of
people. McDonald's is using
different medium for
promoting its commodities like
they are advertising their
products through televisions,
newspapers, magazines etc.,
Promotional strategies are
basically associated with
aspects of revitalizing as well
as reorganizing of brand for
particular time span. This is
aiding them in enhancing their
brand image (Moran and
Hunt, 2014).
Process This includes the complete
procedures from converting
raw material to final products.
It also involves packaging and
after that distributing them to
respective distributors.
Burger king has similar sort of
manufacturing process just like
McDonald's. But it has lower
volume in nature which
decreases revenue.
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People They are manufacturing
products as per the wants and
needs of the customers. Their
targeted consumers are from
all sections of the society and
includes people of different
age groups whether they are
male, females, kids, old aged
persons. They have appointed
employees who are good at
their work and providing better
services to customers and have
created a healthy environment
with buyers.
Burger king is working
according to the people of
different age group and for
making their products more
reliable they are using
ingredients respectively. Like
for kids they are making food
items which are less spicy.
There recipes are more
according to the people's
preference (Wright, 2014).
Physical evidence This includes the factors like
fast delivery of the products to
their customers, producing
items with superior qualities as
per the needs and wants of the
consumers etc., all these
elements is important in order
to maintain their position in
market areas.
In this employees uses all their
experiences so that they can
deliver the best suitable
products to their consumers.
They are using Brochures,
pamphlets for promoting their
products and giving
information related to their
commodities.
P4 Marketing plan for McDonald's
A marketing plan is an comprehensive business blueprint which outline company's
marketing strategies and business plan. It consist all action of plans which are accompanying
specific marketing goals and objectives within a fixed period of time. Here marketing strategies
of McDonald's are framed in order to achieve company's visions and missions in a desired time
period as well as in a proper effective and appropriate manner (Nguyen, Simkin and Canhoto,
2015). This whole systematic and well structured marketing plan is followed and implemented
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by each and every employees of an organisation which is formerly known as McDonald's. This
plan covers various strategies and points which are discussed below:
Executive Summary: A marketing plan is designed in a very systematic manner in which
all ideas and necessary points are covers in relation with marketing of products and services of a
company. All necessity and required factors of business marketing plan are followed and
implemented by each and every staff members for attain company desired goals and objectives
of marketing regarding goods and services. There are various sections are falls under this
business plans are- overview of a company, internal as well as external analysis is done for
analysing situations, proper financial budget of a company marketing is designed for collecting
or allocating funds in a well structured way.
Company Overview: It is well known fact that in today's scenario McDonald's is one of
the leading fast food eating house chain in world. This fast food company was founded in 1940
by Richard and Maurice McDonald in California, United State. Nowadays McDonald's is leading
restaurant chain who serves around 70 millions customers every day in more than 120 countries
by offering or providing quality products with different varieties in a affordable rates. This well
reputed organisation collected revenues from different ways like royalties as well as amount paid
by franchisees. It's headquarter is now situated in Chicago's New West Side from Oak Brook,
Illinois. United State (Oplatka and Gurion, 2017).
Current Marketing Situation analysis: Situation analyse plays vital role in marketing
plan for enhancing and improving business environment as well as it helps in systematic
implementation of commercial enterprise marketing plan. Which play essential role in
maintaining large section of operations in efficient manner. To knew the exact situation of
market as well as for understanding customers demands with concerned, internal and external
investigation is done or implement in a fruitful manner.
Internal Sources Analysis: This is an foremost step for identifying concerned and
problems regarding marketing of goods and services. This internal analysis is done with the
helps of SWOT analysis. Company internal factor like leadership and communication between
different levels of employees as well as financial structure plays important role in achieving
company success and goals in a desired manner. All operations are designed, maintained and
monitored by employees of an organisation internally (Wirtz, Tuzovic and G. Kuppelwieser,
2014). Because they are the valuable assets of an eating house business organisation. By
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