Marketing Essentials: Strategies and Marketing Plan for McDonald's

This report, titled "Marketing Essentials," delves into the core concepts of marketing, focusing on the application of these principles within the context of McDonald's. The report begins by defining marketing and its role in creating customer value and building relationships. Task 1 examines the roles and responsibilities of marketing functions, providing a historical overview of McDonald's and its evolution. It explores various marketing concepts such as production, selling, product, marketing, and social concepts. The report then outlines the key functions of marketing, including management information systems, product and service management, pricing, distribution, financing, selling, and promotion. Task 2 analyzes the organizational structure of a large organization like McDonald's, highlighting the roles of various departments such as production, administration, research and development, finance, human resources, sales, marketing, ICT, distribution, and customer service. Task 3 focuses on the marketing mix, examining the elements used by McDonald's to target its market. The report concludes with a marketing plan for launching a new product, summarizing the key strategies and approaches employed by the company. The overall objective is to provide a comprehensive understanding of marketing strategies and their practical application within a real-world business context.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Role and responsibility of marketing functions....................................................................1
P2: Role and responsibility in context to large organisation ......................................................4
TASK 2............................................................................................................................................7
P3: Different marketing mix that are used by McDonald's.........................................................7
Task 3...............................................................................................................................................9
P4 Marketing plan.......................................................................................................................9
Conclusion ....................................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Marketing is process through which most of the companies create value for its potential
customers and develop a powerful relationship in order to capture interest of customers in return.
It is said to be one of the most important aspects of marketing function which are performed by
the company. It helps to provide proper assistance to a firm in respect to attain its aims and
objectives. Marketing requirements are fulfilling according to the needs and wants of customers
regarding the products which are offered to them. This project report consists of various tasks
which is related with importance to any business concern (Dibb and Simkin, 2013).
Understanding of role and responsibilities of marketing to the McDonald's. The application of
marking mix to in planning process are determine under this project reports. Further, it
summarised with a marketing plan for launching a new product in the market. The overall project
is based on complete marketing strategies which are adopted by the company in order to create
value and interest to its customers.
TASK 1
P1: Role and responsibility of marketing functions
Marketing: It refers as the management process which is associated with identifying,
anticipating and fulfilling the needs and wants of the customer’s requirement profitably. As the
main objective of marketing is to determine the customer needs and make available to them as
per the demand. It is an activities and a process for creating and delivering value to customers
and society at large.
History of McDonald's:
McDonald's is self-established business which was established by Richard and Maurice
as a quick service restaurant business. While, Ray Kroc was known to the founder of this
corporation. In 1940s, Dick and Mac were searching for an idea to modify their small restaurant
in San Bernardino. They decided to open a new chain of concepts which is totally based on the
fast service, minimum price and large capacity (Fader, 2012). McDonald's is the largest leading
food retailer company with having more than 30,000 restaurants in around 119 countries. They
are serving around 47million customers every day. It is considering as one of the well-recognised
brand and valuable products serving company in today's time. Its business is all around the world
as local, national and international.

There is various marketing concept which a company follows in their business operation:
 The production concepts: Under this concept, the company determine the customer's
need as they are ready to pay for those are best quality of much more economical. As, it
was seen in McDonald's that they are regularly working on the planning of production of
those product and services that satisfied the needs and fulfil the demand of potential
customers.
 Selling concept: The another one is selling of products in the market according to
demand and customer taste. It is mostly that concept which determine the promotion of
products between the customer. Because with having proper ideas about the product they
are not going to buy it. So the company need to sell its product by using proper
promotional plan.
 Product concepts: The major aspect of this concept is most focused into that products
which are of best quality and superior features. The best part of this concept is that the
company is implementing new strategies to make changes according to the need to its
customers (Garrigos-Simon, Lapiedra Alcamí and Barberá Ribera, 2012).
 Marketing concepts: Now, this will target those aspects though which products are
make available to the customers. Whenever a product gets launched the main motive of
the company is to done effective marketing of such product so that it gets maximum
attention of customers.
 Social concept: If talking about he products, customers and any other aspect the society
cannot be ignored as they are most valuable assets for the company. The company need
to profit maximum benefit to them through providing quality products to them.
Role of Marketing:
Marketing is an important aspect of any business by which they can promote they
products into the market. The major role of marketing is to provide quality products to its
customers according to demand or which can satisfy their needs and wants. It is mostly based on
customer perception as what they want from the product. The more product sale the maximum
the company get profit in coming time.
Functions of Marketing:

Illustration 1: Key functions of Marketing
(Source:)
 Management information system: It is responsible for managing and recording product
records and sales which are produced by the company during the year. It is totally
monitored through using a system which is controlled by a software. It is more reliable
source to take effective decision regarding the products (Gordon, 2012).
 Product and service management: It is mostly related with the product designing and
improvising new changes which are demanded by the customers in their products. The
McDonald's is making more focus on the quality of packaging and designing of products.
 Pricing: It is an effective function of marketing on which the product depends.
McDonald's is using effective pricing strategies such as price skimming and competition
pricing.
 Distribution: Determining the effective ways in customer perception to regain, obtain
and utilise the best product of a company. A perfect network of distribution channel is

been followed in an organisation to deliver the best quality product and services to its
customers.
 Financing: Finance is concern as most effective part of the company. It is used to meet
out the marketing needs of delivering products to its customers and fulfil basic
requirements of the company which are need on priority.
 Selling function: As, marketing of product is concern with selling of product in the
market so that customer will get to know about the new brands of products. There are
various modes through which product are sell in the market.
 Promotion: One of the most effective and important part of marketing on which most of
products life are depends (Hair and et. al., 2012). It is the process through which products
are reached in between the customers by Promotion modes such as advertisement,
hoardings and TV
P2: Role and responsibility in context to large organisation
In an organisation which is operating in a large business are mainly followed a well
organised structures in order to carry its daily operations. Likewise, McDonald's is working as
largest retail chain restaurant so they are following horizontal structure.

Illustration 2: Organisational structure
(Source:)
The above mentioned is a common structure which is followed in almost every
organisation. It is important to operate businesses more effectively through combining support
from each department those are working for the same motive to achieve the desire objectives.
The above are explained in detailed:
Production: It is said to be initial stage of products which are produced by the company after the
demand of customers. They make products as per the taste and preference which can satisfy the
customers (Hansson, Wrangmo and Solberg Søilen, 2013). This department is working regularly
for making quality products after taking review and valuable suggestions.
Administration: The major aspect of this department is to take control of all the areas which are
working for manufacturing process. They are related with the human activities which are
conducting while preparing products plan and its implementation.
Research and development: They are responsible for making necessary research of requirement
that customers demanded in the products of McDonald's. After making a survey they analyse the
information an implement during product development phase. It will help to sort out various

queries which earlier there in products. Cited firm is required to conduct feedback to their
customer and understand the actual needs of their so that they can design their product and
services accordingly which provide a long and short term targets.
Finance department: It is said to be most important department which is responsible for
meeting financial support that are arises while production process. The determine different
sources of finance which are available to company to carry out its daily operations. If any
product promotion is done by the company are first financed by finance department then after
they are able to do the rest works.
Human resource: They are also considered as one of the important part of McDonald's as they
are hiring those skills and capable people who are ready to work at any time. According to them
they have innovative ability which can be effective assets for the company. It will help to
achieve their tasks in much more effective manner. They resource which are used by the
company are also determine by HR department.
Sales: In the marketing of products and services sales department plays an important role in
delivering quality product to its customer. The sales department looks after the demand of
customers are fulfil in allotted time or not. They also determine which products is more in
demand (Lamb, Hair and McDaniel, 2011). They feedbacks suggestions are also collected by the
sales team from various customers those are using products of a cited company.
Marketing: If the products are made by the company or get ready to be launched in the market
then the role of marketing comes. The marketing department looks after all those products which
are produced by the company need to be commercialised into various cited. It is done in order to
know the responses of customer after using that products.
ICT: In the present era they are different technologies are followed by the company to make
their products more superior from other. As, technology is playing more dominant role in
creating awareness of products among customers. The McDonald's is using various effective
mode of technologies in order to create brand perception of their quality foods in the mind of
customer. They are providing modernisation in the technology so that staffs cannot have to do
more work in serving the foods.
Distribution: This department works in relation to deliver products to its destination. By the
help of this department various products which are produce by the company are delivered at

different location where they are operating its businesses. The chain of distribution are
responsible for provided proper support to each retailers and suppliers in serving the products.
Customer services: One of the crucial department which is responsible for resolving various
issues regarding the products which are consumed by the customers. As per as the marketing
function is concern there are various queries and feedback which are comes from customer
viewpoints are sort out by this department (Lipsman and et. al., 2012).
From the above mentioned different organisational structure which are bit similar to
McDonald's are responsible for maintain balance among each department in order to achieve
their desire goal. The marketing strategies are more responsible for maximising the productivity
and sales of the company so that necessary growth opportunities can be created in future.
TASK 2
P3: Different marketing mix that are used by McDonald's
Marketing mix is a core component of enterprise marketing system which is used to
develops goods and services in order to determine its different price. It is useful for its
arrangement and promotion to satisfy the customers’ needs and wants. It is said to be the
combination of various elements such as products, price, place and promotion. Marketing mix
use to cover product and service market at the same time.
According to various authors “Marketing-mix is a set of manageable variables which is used by
the company in order to identifies its target market.”
There are 7marketing mix which are used by the company in order to determine the target market
for its product into the market. It will also help in planning of various activities which are done
by the company in order to promote its products. Those are discussed underneath:
Marketing mix comparison between McDonald's and Domino’s
Marketing mix McDonald's Domino’s
Product: It has been observed that
McDonald's is known for its best
quality products. By the time past,
they made various other products
which are new in the market and
more favourable to the customers.
The Domino’s use to make
strategies for the product for both
types of people so that every one of
them can enjoy the services
accordingly. It has always need to be
determine by management team that

So the cited company need to
implement necessary plan in order to
remain at the top position in the
market (Malhotra, Birks and Wills,
2013). They are serving more
effective products as per the taste
and culture which are demanded by
the customers of that particular
country. As its has been found that
in some part of the country they
used to prefer vegetarian foods and
some are used to have non-veteran.
before launching of a product into
the market they need to analyse the
market. It will help to introduce as a
sample in order to know the
particular responses. The important
think a customers need in its product
is the quality which is of the primary
concern for the people. There are so
many products available in the
market which are not of appropriate
quality.
Price: There are different types of pricing
strategy which required to fulfil by
the company in order to gain
competitive advantage in the market.
Therefore, every enterprise is
required to set their product price as
compare with the market.
McDonald's one of the leading
corporation which provide a
different types of pricing strategy.
These can be:
Discount pricing: This is one of the
most usable approach in the fast
food industry where a firm provide
its product at the lower price. The
main objectives of such method in
order to increase its sales and
competitive position in the market.
Competitive pricing: This is another
approach where a company is
offerings it product lower in the
industry. Domino’s having large
number of resources where they set
its product at the lower price and
increase its market share.
Premium pricing: There are
different products which can be used
by the cited firm for the niche
market. they can offer customized
food products to its customers so
that they can increase their revenue
and gain competitive position.

for instance, cited firm can offer
discount pricing in the festive
season.
Place: This is related with the supply chain
and distribution centre and located at
the strategic position. McDonald's
having about more than 35000
outlets in the different countries. It
provides competitive position in the
market which is very crucial.
On the other hand, Dominos have
more than 13000 outlets across the
world which pro0vide competitive
advantage to them.
Promotion: There are various aspects of
promotional activities which plays a
critical position in the market.
McDonald's is spending billions of
dollars in on advertising and
promotion. The company is also
providing finance to the different
sports and fashion events which is
very significant in order to promote
firm’s product and services.
In the era of internet, there are
different types of strategies and
tactics such as Facebook, Instagram
and You Tube can be used by
Dominos in order to increase
awareness in the market.
Task 3
P4 Marketing plan
A marketing plan is a systematic process of design a plan supported with the strategies so that
they can get meet their long term growth and targets. Further, there are various stages involves
which is crucial for the company. These stages can be involving:

Mission and Vision: Each and every firm having its own mission and vision which is required to
follow by the company (Wirtz, 2012). A mission statement is related with the organization
business, its objectives those an enterprise wants to achieve in the near future. On the other hand,
vision statement is belonging future position which a company need to be achieved. In the
context of McDonald's which mission is provide the value and culture followed by staff. The
firm mission statement in mentioned below:
“Good Food, Food people and Good Neighbour”
Good Food: It is related with the cited firm is offering a high quality food to its customer which
is very crucial for a company to increase its customer satisfaction level.
Good People: There are large number of staff who provide a quality services to its customer.
McDonald's conducting effective training for its employees in order to increase the customer
service which is very significant for the current and future performance of the company.
Good Neighbour: There are large number of people who came for the enjoy their food and tries
to make their environment friendly (McDaniel and Gates, 2013).
Corporate objectives: This is one of the major issue for a business organization and related to the
short term goals. McDonald's wants to expand its business in different market so that they can
increase its market share. For example, there are various countries like India, Indonesia, China
etc. these market is attractive in terms of size and helps to consistent growth of the company.
Environment scanning:
External environment:
Today, business environment is to dynamic in nature and need an effective decision making in
order to attaining their short and long target. Because, external environment is controllable but
with the help of careful analysis a company can overcome they potential threat. There are various
methods used for understand their factors by the management. In the context of McDonald's,
should be analysed in an effective manner. These factors can be involving:
Political factor: This is one of the major element which influenced a business and its future
growth. Each and every country having its own government structure which design its policies
and guidelines of business. United Kingdom is a nation where government is stable and provide
a long term consistency in the business (Swenson, Rhoads and Whitlark, 2014).

Economic factor: For a healthy business growth, the role of economy is very significant which
generate demand of goods and services. There are following aspects can be involving in this
factor and its influence on McDonald's future operation:
Demand of product: This is one of the major factor where demand of a product or
services helps to grow the business. In the context of UK, where
there are large number of staff prefer fast food it will increase the
demand of the McDonald's products.
Interest rate: The role of interest rate is very crucial because it influence the
growth rate of a company. For instance, McDonald's wants to
expand its business which they need financial resources from
different sources specially banks (Mittal, 2014).
Inflation rate: The inflation is related with the increase in the price of the product
and which is very crucial. The inflation rate in the UK is under
control of the government which is very significant of a price of
the product offered by McDonald's.
GDP growth: UK GDP is $2.5 trillion which is one of leading economy in the
world. This growth rate also around, 2.5 % which is also good as
compare to other European countries and helps to generate
demand.
Legal factor: This factor is related with the legislation and other elements and influence the
decision making and profitability of the company. There are various laws which are given below:
Minimum wage rate: Each and every country is having its own labour charges which
influence the revenue of the company. In the case of UK, which
having more labour charges as compare to other countries reducing
the profit for McDonald's.
Working hour: This is one of the most critical aspects which is related with the
working hour limitation. In the case if UK, where such limit is
depending on the age group.
Income tax legislation: This is another element where a company should pay their tax to
the government. If these rates are high providing a negative

influence on business and vice versa.
Social factor: It is another external factor which is related with the culture, value, beliefs, taste
and preferences. Further, there are various elements specially the different types income groups
and its role in the demand of product and services. In the case of UK, where large number of
people which income level is quite and helps to increase the competitiveness in the market and
sale its products. The community of UK are like fast food and its part of their culture helps to
maintain a consistent growth and development of product and services and meet their short and
long term targets in an effective manner.
Technological factor: In the modern business innovation and technology having a large
significant. There is various technological aspect such as internet, integrated supply chain and
other elements and make their business more competitive which can meet their short and long
term targets. For instance, there are various social media tools- Facebook, Instagram, You Tube,
Instagram etc. Marketing department of McDonald's can use these elements and make them more
competitive for the future (Nguyen and Simkin, 2012).
Environmental factor: Today, customer is more aware regarding environmental factors. This is
role and responsibility for each and every enterprise is to implement sustainable business
practices. It will create a good corporate image of the company in community. For example,
McDonald's can use eco-friendly packaging it will reduce the negative impact on climate and
also create awareness in the public. Further, McDonald's can also use electric vehicle in their
supply chain and enhanced their operational activities in an effective manner.
Internal environment: There are various factors also influenced a business internally need an
effective evaluation so that they can provide a continued growth to their business. There are
following SWOT analysis:
Strength McDonald's one of the well-known brand in the UK and other parts of the
world.
The firm is having more than 35000 stores as compare to their
competitors.
The product range is quite large which can provide competitive
advantage in the market.
Weakness The health awareness of fast food is growing and its having negative

impact on the development of business at McDonald's.
Opportunity There are various countries such as India and Chain where middle class
group are growing helps sustain their market share (Pike, 2015).
Then can provide healthy food and energy drinks and increase their sales.
Threats Large corporation such as KFC, Pizza Hut etc. build a tough competition
level and helps to grow their business.
Marketing mix: At this stage a company required to organize the various aspects specially the
marketing mix. These are mentioned below:
Product McDonald's product can involve burgers, pizza, cold drinks, juices, cold
coffee etc. The product quality also having a good standard which can
provide a competitive position in the market (Ogunmokun and Tang,
2012).
Price The price of their food products also quite low which helps to increase
sales.
Place The firm having 35000 outlets in different content around the world.
Promotion McDonald's spending large amount of capital on advertising and other
aspects.
Budget: There are following budget involves their proposed marketing program:
Particulars Amount £
Personal
Wages
Taxes
Other expenses
1200
1500
1800
Marketing research
Expenses on primary research
Expenses on secondary research
5220
2600
Marketing communication
Branding 4500

Social media
Digital media
Print Media
8900
5620
1500
Total 32840
Implementation: This is the final stage in which marketing manager should implement the
overall marketing strategies so that they can meet their established target and provide
competitive position to their company (Papasolomou and Melanthiou, 2012).
Conclusion
As par the above mentioned report it has been concluded that, marketing strategies helps to
provide competitive position in the market. This report talked about the various functions of
marketing such as market research, planning, customer relation management and so on. The next
part has been discussed about the roles and responsibilities of marketing manager in relation with
the McDonald's. This report also explained about an effective marketing plan which plays a
critical role which can meet their expected target.

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Online
7 P's of marketing. [Online]. Available through:<https://www.marketing91.com/service-
marketing-mix/>. [Accessed on 12th October 2017].