LSBM101 Marketing Report: McDonald's Strategies and Principles

This report provides a detailed analysis of McDonald's marketing strategies and principles. It begins with an introduction to the globalized market and the importance of effective marketing for business success. The main body of the report explores various marketing concepts and terminologies, including product strategy, branding, and promotional strategies, as they relate to McDonald's. It identifies specific marketing strategies and programs employed by the company, such as its mission, vision, and objectives. The report then delves into different marketing principles and concepts, including the marketing mix (product, price, place, promotion, physical evidence, process, and people), STP (Segmentation, Targeting, and Positioning), and market research. The report also includes a poster and concludes with recommendations for improving McDonald's marketing efforts. The report examines the relationship between marketing and other departments within the organization. Overall, the report offers a comprehensive overview of McDonald's marketing practices and provides insights into how the company maintains its competitive position in the fast-food industry.

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Table of Contents
1. INTRODUCTION.......................................................................................................................1
2. MAIN BODY ..............................................................................................................................1
a) Various marketing concepts and terminologies .....................................................................1
b) Identification of marketing strategies and programs .............................................................3
c) Different marketing principles and concepts .........................................................................3
3. POSTER ......................................................................................................................................6
4. CONCLUSION AND RECOMMENDATIONS .......................................................................8
5. REFERENCES............................................................................................................................9

1. INTRODUCTION
In the present scenario of globalised world, acquiring a best positioning within an
existing industry becomes the biggest challenges in majority of the organisation. This is because,
it has been signified that, effective marketing principles or strategies help company to increase
its customer base that directly reflect in enlarging the market share or size in an improved
manner. Hence, the division of marketing plays a significant role within an organisation as it is
concern with a systematic or organised business activity which encompasses promoting and
selling of products or services by conducting market research, advertisement with an aim of
providing high level of customer satisfaction and also enrich the brand image in present industry
(Abedi and Abedini, 2017). IN regard of this report, McDonald company has been regarded
which is one of the reputed and well established fast food restaurant in Chicago. It is founded in
the year of 1940 and deliver varieties of food products across the globe such as hamburgers,
chicken, French fries, desserts, soft drinks and many more. Hence, for obtaining a competent
position, an effective marketing tactics drive McDonald to attain the same in a smooth manner.
However, this report covers the various marketing concepts or terminology, different strategies
which help firm to enhance its market and application of marketing principles to improve the
company's overall sales performance. Finally, analysing the relationship between marketing
function with other departments as well as recommending the relevant marketing strategies
which lead enterprise to accomplish its pre determined goal in an effective manner.
2. MAIN BODY
a) Various marketing concepts and terminologies
The aspect of marketing is viewed as an integral component within an enterprise as it is
help an establishment to identify its potentiality and also help them to implement best decision
inn order to gain competitive advantage. In relation to McDonald, it take an attempt to adopt
various marketing concepts which are explained below:
Product Strategy
IN the views of Philip Kohler, This prospect is related with those function which assist an
organisation to produce best quality of products with an intent of obtaining profit maximisation
in an effective or efficient manner (Anusha, 2016). In addition to this, it also encompasses the
estimation of commodity cost as high price mat negatively influence the demand of brand.
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Therefore, for overcoming such negative impact the concept of product strategy aid an
organisation to examine the market requirements as well as customer expectation towards the
brand. In context of McDonald, the implication of product strategy drive them to determine the
consumers interest or want as well as motive them to examine their overall income rate so that
McDonald can produce its product or service introduce in a best quality and affordable price.
Along with this, it also enable McDonald to implement best strategic decision against of
unpredictable market challenges in order to place the brand in an aggressive position and can
maintain positive response among targeted audience. For example, If McDonald allocate the
available resources at optimal level and also can imply various marketing mix then it assist them
to enlarge the market division among competitors and also can create impressive style of brand
value (Erragcha and Romdhane, 2014).
Branding
As per Simmel's opinion, it defines that the concept of branding is combination of
subjective and objective nature. On the basis of objective perspective, it has been stated that
utilising promotional tool help an organisation to enlarge the market share and consumer base.
On the contrary, subjective perspective refers that determining the need or demand of customer
lead an establishment to increase its proficiency ratio. For example, if McDonald make an
attempt to evaluate the industry need and based on that take corrective course of action for
attaining sustainable growth or development in an amended mode.
Promotional Strategy
According to push and pull strategical theory, the term branding is a accumulation of
two factors i.e. pull and push which drive them to acquire best positioning inside an industry. IN
the perspective of pull factors, it encompasses the marketing channel of communication like
advertisement, sales promotion and etc. for reaching wider range of population in an innovative
style (French and Russell, 2015). ON the contrary, push factor is link with adoption of different
kinds of promotional tactics for enhancing the productivity rate in an improved manner. For
example, If McDonald advertise its product with the utilisation of both traditional and advanced
method then it help them to attract the the attention of new customer and also enable them to
retain existing consumer towards the brand on long term basis.
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b) Identification of marketing strategies and programs
The term marketing enable an establishment to make use of available resources to their
fullest potential and also aid them to maximise the profit margin among rivalries in an effective
mode. IN relation to McDonald, it take an initiative to produce a marketing strategy which is
discussed beneath:
Mission: The mission of McDonald is to become the first and best choice for customer
by delivering the product in a high quality.
Vision: The vision of McDonald is to place the brand in a competent position by
grabbing innovation and advancement within functional unit.
Objective: The business objective of McDonald is to enhance the sales performance by
15% in upcoming 6 months time duration (Harrington, Ottenbacher and Fauser, 2017).
Overall marketing strategy: IN regard of this feature,m McDonald make use of
enormous opportunities for exploring its market share as they deliver the product in impressive
level of discounts, offers during various festive season which motive them to increase the
customer base and revenue ratio among competitors. .
c) Different marketing principles and concepts
The foremost foundation which lead an organisation to achieve impressive level of
success within a desired time limit is that an adoption of effective marketing principles as it help
them to place its product in a right position. Moreover, marketing principles is a amalgamation
of marketing mix i.e. product, price, place, promotion which empower an association to create a
value among customer towards the brand in an improved manner. Some of the basic marketing
principle are 7ps, STP and market research which is mainly concern with enriching the brand
image of company by utilising the available resources at optimal level. In regard of McDonald,
it make an attempt to apply different types of marketing principles with an intent of enhancing
the profitability ratio in a better way and it is explained below:
Marketing mix
Product: Under this element, it is link with delivering high quality products in order to
enrich the sales volume of company in an efficacious manner. In context of McDonald, it offer
wide range of fast food products like cheeseburgers, Big Mac, various flavours of chicken
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sandwiches, wraps, desserts, beverages, soft drinks and many more. However, McDonald
operate its functional unit in a fast food industry where customer taste and preference keeps on
changing as per market trend that directly impact over firm's proficiency rate. IN relation to such
kind of challenge, McDonald conduct market research which drive them to produce best quality
product in order to gain competitive and also help them in retaining the audience towards brand
for longer time limit.
Price: This determinant is one of the important factor in majority of the organisation as
per present situation of marketplace consumers are very much aware about the cost of product
that may influence company's productivity ratio. In context of McDonald, it utilise different
types of pricing techniques for its products. Some of them are value pricing, price discrimination
and cost leadership strategy which assist them to offer its product in competitive pricing. With
the help of this contribution, it aid McDonald to increase its customer loyalty in an amended
manner (Išoraitė, 2016).
Place: In this context, McDonald has presence in 116 countries as it covers malls,
highways, markets that assist them to explore its market division in several geographical regions.
Hence, by covering such location it enable McDonald to explore its consumer base and also help
them to attain sustainable growth or development in an efficient mode.
Promotion: Under this element, McDonald take an effort to utilise all sort of available
promotional strategy which enable them to increase its productivity ratio in an efficacious way.
However, McDonald adopts both traditional and modern ways of promotion i.e. advertisement in
newspaper, magazines, social media, online marketing, billboard, direct selling, sales promotion
and many more. However, due to making use of varieties of promotional technique it enable
McDonald to enhance its sales volume and profit margin ratio (Kaurav, Paul and Chowdhary,
2015).
Physical evidence: Under this, McDonald maintain its interiors design or decorum in an
attractive style as they use all innovative equipment that help them to attract the attention of large
number of population in an effectual way. Hence, it assist company to enrich its brand value and
also empower them to improve volume of sales in an improved mode.
Process: In this principle, McDonald uses simple process for handling or manage its
managerial and operational activities. Due to this, it motive establishment to deliver the product
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in quick manner that generate positive response among targeted audience in an efficacious
manner.
People: Under this, McDonald has highly skilled and talented 2,10,000 employees who
are potential enough to put their full effort towards an accomplishment of organisational goal in
an prompt mode. However, such efficient manpower enable McDonald to cope with all sort of
current and emerging marketing challenges in an innovate or creative manner and can place the
brand in a impressive position.
STP
As per the market analysis of McDonald, it has been recognised that it is a world's
leading global food-service retailer with a presence of 35,000 location and serving around 70
million customer in over 100 countries. However, company has been taken initiative in dividing
its product service and also targeted the market which aid them to improve its overall
performance.
Segmentation: IN this, McDonald segments its large market size into different smaller groups
that aid them to render best quality of service to audience and also enable them to obtain profit
maximisation. Some of its segmentation categories are on the basis of geographic, demographic
features which help them to acquire aggressive position within prescribed time limit among
competitors (Kerin and Hartley, 2015).
Targeting: In regard of this factor, McDonald target children, youths, adults who are so much
fond of consuming fast food that benefits company in enhancing the overall sales performance in
a better way. Furthermore, they always ensure to deliver high quality products which help them
to retain the customer for longer time period.
Positioning: IN the views of this component, McDonald place its brand in different malls,
highways and so on that drive them to reach large number of consumer towards the brand in an
innovative style.
Marketing Research
Identifying the problem: In the stage of conducting market research, defining the accurate
issue or problem is viewed as a initial step. This is because, it help McDonald to take corrective
course of action throughout the procedure and can acquire competent position within prescribed
time limit.
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Producing marketing research plan:After defining the problem, McDonald make an
effort to generate various research plan in the form of interview, survey, questionnaire,
observation which assist them to gather relevant data for attaining sustainable growth or
enhancement in an amended way.
Gather reliable data: Once after conducting research plan, McDonald make sure that its
targeted respondents are providing relevant or accurate information for enriching the sales
growth in an amended manner (Liu nad et.al., 2017).
Analysis data: After obtaining information from targeted audience McDonald analysis
the and interpret the data so that they can be able to convey appropriate suggestion to
organisation for enlarging the market division in a desired time limit.
Research into action: It is the final phase of market research in which McDonald make
an attempt to acquire overall findings and as per that take corrective course of action with an aim
of attaining increased level of productivity ratio.
3. POSTER
An organisation is a combination of two or more departments which come together with
an intent of achieving organisational common goal in an efficacious and efficient manner. Apart
from this, each and every business function has its own roles, responsibilities, features that make
them differ from each other. However, proper coordination and collaboration of these various
department enable an establishment to attain sustainable growth as well as to maintain an
organisational structure in an improved manner. This is because, cooperative working culture
lead any sort of association to manage clear communication channel, acquire increased level of
employee engagement as well as explore the overall productivity of organisation in existing
marketplace. In context of McDonald, it comprises with several departments which are varies
from each other in terms of function and purpose yet each of them are interconnected that drive
firm to create positive working environment. Some of the relationship between marketing and
with other division are explained below:
Marketing department and Human Resource departments: These two component are
regraded as one of the important aspects in an establishment as it help them to acquire highly
skilled manpower for enhancing the overall performance of company. In relation to human
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resource division, it is concern with selecting or recruiting effective employees with an aim of
maintaining the better working environment. However, McDonald's HR section make an
initiative to approach marketing department for helping them in capturing the interest of various
personnel towards the company in order to fill the vacant job position within prescribed time
limit without any hindrances. In attaining the same, McDonald's take an effort to make use of
various advertisement techniques like social media platforms. Internet marketing, newspaper,
magazines, campus recruitment, job fare and many more. Due to such action, McDonald's human
resource unit will be able to attract the large number of talented personnel who are capable to
impose novel ideas or tactics for the betterment of organisation sales volume. Henceforth, such
type of interrelatedness between marketing and human resource function, it enable McDonald to
enlarge its profit margin ration and productivity ratio in an trenchant mode (Ogunnaike and et.al.,
2014).
Marketing department and production departments: Under this, production unit is relate
with delivering or producing the specified product in an amended mode with an aim of satisfying
the demand of targeted audience. To this case, McDonald marketing function conduct market
research in order to obtain the accurate information regarding customer demand , need as well as
also drive them to gain competitors potentiality. On the other hand, production function take an
initiative to offer required product as per the demand of customers by maintaining high level of
quality which assist McDonald to minimise the wastage of product, cost and time. However,
such sort of interconnection between marketing and production enable McDonald to implement
best decision in terms of increasing the consumer base and enlarging the market share beyond
the geographical region with less occurrence of risks.
Marketing department and Finance department: Both of these determinants are related
to managing the financial performance of company for fulfilling the dynamic nature of
customers requirements in an appropriate time (Pounds and et.al., 2014). In context of this,
McDonald's operate its service at international pace for which there is a need of enough amount
of money to attract the attention of targeted audience and also meet up their expectation in an
efficient manner. For accomplishing the same, McDonald's marketing division make an attempt
to determine the current market situation and ascertain overall budget for promoting the product
in a better manner. Henceforth, finance unit render required amount of fund which motive
McDonald's marketing division to utilise various kinds of promotional strategies like
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advertisement in newspaper, magazines, conducting billboards, online marketing, social media
platforms and so on. With the help of such interlink among finance and marketing department, it
assist McDonald to take corrective course action in an appropriate time and also aid them to
reach large number of population in a innovative style without nay obstacles.
Marketing department and IT department: Under this interrelationship, McDonald IT
division is associate with storing, retrieving and managing employees as well as organisation
data in a secure manner (Riivits and Leppiman, 2014). In addition to this, they also contribute
towards marketing department by taking initiative in introducing the innovative software
application or technologies that enable McDonald to explore its proficiency ratio. Henceforth,
due to the interrelationship between marketing and IT section, it empower McDonald to impose
positive response among targeted customers and also help them to enrich the sales performance
in an improved or innovative style.
Henceforth, the above explained interrelationship among various business function, it is
has been signified that such kind of relationship enable McDonald to enlarge its market share
and also can gain competitive advantage in a stipulated time limit.
4. CONCLUSION AND RECOMMENDATIONS
Some of the recommendation that has been identified for McDonald are as follows:
 The primal thing which McDonald can consider is that should take feedbacks or reviews
from customer regarding the brand experience. With the help of such action, it lead
McDonald to enrich its profitability ratio in an amended way.
 Additionally, McDonald must grab innovative technologies and tactics which drive them
to gain competitive advantage and also can improve sales performance in a positive
mode.
It has been concluded from the preceding explained report that the concept of marketing
enable an organisation to promote its brand in an improved manner and also empower them to
enlarge proficiency ratio. Additionally, application of various concepts, terminology, principles
enable establishment to improve sales volume among rivalries in an amended manner. Moreover,
identification of interrelationship between marketing with other business function assist company
to accomplish pre determined goal in an efficacious way.
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5. REFERENCES
Books and Journals
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tendency to the hospital using analytic hierarchy process. International Journal of
Healthcare Management. 10(1). pp.34-41.
Amofah, O., Gyamfi, I. and Tutu, C. O., 2016. The influence of service marketing mix on
customer choice of repeat purchase of restaurant in Kumasi, Ghana. European Journal
of Business and Management. 8(11). pp.102-112.
Anusha, K. S., 2016. Brand a marketing mix: a review. Journal of Global Economics. 4(3). pp.1-
4.
Erragcha, N. and Romdhane, R., 2014. New faces of marketing in the era of the web: from
marketing 1.0 to marketing 3.0. Journal of Research in Marketing. 2(2). pp.137-142.
French, J. and Russell-Bennett, R., 2015. A hierarchical model of social marketing. Journal of
Social Marketing. 5(2). pp.139-159.
Harrington, R. J., Ottenbacher, M. C. and Fauser, S., 2017. QSR brand value: Marketing mix
dimensions among McDonald’s, KFC, Burger King, Subway and Starbucks.
International Journal of Contemporary Hospitality Management. 29(1). pp.551-570.
Išoraitė, M., 2016. Marketing mix theoretical aspects. International Journal of Research–
Granthaalayah. 4(6). pp.25-37.
Kaurav, R. P. S., Paul, J. and Chowdhary, N., 2015. Effect of internal marketing on hotels:
Empirical evidence for internal customers. International Journal of Hospitality &
Tourism Administration. 16(4). pp.311-330.
Kerin, R. and Hartley, S., 2015. Marketing: the core. McGraw-Hill.
KESTANE, S. Ü., 2014. DIFFERENCES BETWEEN THE CONCEPTS ASSOCIATED WITH
SOCIAL MARKETING. International Journal of Economic & Administrative Studies.
7(13).
Liu, Y nad et.al., 2017. The effects of products’ aesthetic design on demand and marketing-mix
effectiveness: The role of segment prototypicality and brand consistency. Journal of
Marketing. 81(1). pp.83-102.
Ogunnaike, O and et.al., 2014. Empirical analysis of marketing mix strategy and student loyalty
in education marketing. Mediterranean Journal of Social Sciences. 5(23).
Pounds, L and et.al., 2014. Social marketing campaign promoting the use of respiratory
protection devices among farmers. Journal of agromedicine. 19(3). pp.316-324.
Riivits-Arkonsuo, I. and Leppiman, A., 2014. Online Word-of-Mouth on Brands and Experience
Marketing. Journal of Management & Change.
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