McDonald's Marketing Plan and Functional Department Analysis

This report provides a comprehensive analysis of McDonald's marketing strategies. It begins with an introduction to the concept of marketing, including current and future trends, and then details the different marketing processes. The report examines the roles and responsibilities of a marketing manager within the organization and how marketing interrelates with other functional departments. It emphasizes the value and importance of the marketing role and concludes by highlighting the significance of effective interrelationships between different functional departments. Furthermore, the report compares how McDonald's applies the marketing mix to its marketing planning process to achieve business objectives and produces and evaluates a basic marketing plan for the company. Overall, the report offers insights into McDonald's marketing practices and their impact on the company's success.

UNIT-2
Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
1. Concept of marketing including current and future trends.....................................................3
2. Overview of different marketing processes............................................................................4
3. Roles and responsibilities of marketing manager in context of the organisation...................5
4.How marketing influences and interrelates with other functional departments of the
organisation.................................................................................................................................6
5. Value and importance of the marketing role in the context of the organisation.....................7
6. Conclusions that emphasise the significance of having effective interrelationships between
different functional departments.................................................................................................7
7 Compare the ways in which the chosen organisation applies the marketing mix to the
marketing planning process to achieve business objectives.......................................................8
8 Produce and evaluate a basic marketing plan for the chosen organisation............................10
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is the study of management and exchange of relationships. It is concerned with
distributing gods to the customer to satisfy their wants. In general, it is concerned with the
process of creating relationship with customers and satisfying them by providing goods and
services according to their needs and desires (Baines, Fil land Page, 2013). It is a vital
component to satisfy customer needs and meeting individual expectations.
Chosen organisation under the report is McDonald's. It is an American brand which provides
products products in fast food sector including burgers, chicken products, soft drinks, milk
shakes and many more.. It was founded by Richard and Maurice McDonald in 1940,
headquartered in Chicago. The project will focus on concept of marketing which will include
current and future trends. It elaborates responsibilities of the manager within the organisation as
well as it its interrelation with other functional departments. It also compares the way company
applies the marketing mix and compares it with another company. Marketing plan for
McDonald's is also mentions in this report.
Main Body
1. Concept of marketing including current and future trends
Marketing is a broader concept which analyses the needs and desires of the customer and
provides products accordingly. Marketing concept determines that McDonald's analyse
consumers needs and desires and take decisions effectively to meet customer needs and wants.
Concept of marketing-
 Production concept – This concept focuses that consumers will preser purchasing
products at a lower price and which are easily affordable. McDonald's manager
concentrate on high production efficiency and mass distribution and will incur low cost
for products. This will enhance customers to take more interest in low prices products
and assist respective company to provide quality products (Baker and Magnini, 2016). It
is based on the current trend of artificial intelligence where which the respective
company make use of AI and chat box which helps respective company to find their
customers need according to their demographic , behaviour and other concepts.

(Source: Concepts of Marketing, 2018)
 Product concept- This concept holds that customer will favour those products that are
high in quality and innovative in nature. Here McDonald's focus on continuous product
developments in order to attract more customers. This concept is based on the trend of
relationship marketing which focuses on producing goods according to customers needs
rather than increasing sales for the company.
 Selling concept- It is based on the idea that in order to make customers aware about the
products respective company should undertake promotional and selling efforts.
Management at Mc Donald's focus on improving selling by promotional efforts rather
than building long term profitable relationship with customers. Current trends are social
media marketing which McDonald's has adopted such as starting promoting its products
on social media tools such as Facebook, Instagram and many more. It has also started
retargeting campaigns by sending text messages, targeted mails in order to create
awareness about its products.
 Marketing concept- It is a major concept which holds that company should analyse
needs of customers and then should take decisions to satisfy those needs, better than their
competitors. Trend in marketing includes virtual reality which the respective company
also uses as a way to create awareness about overall brand messaging and targeting
Illustration 1: Concepts of Marketing

potential customers (Brooks and Simkin, 2012). This concept is totally based on
customers experience thereby producing goods according to customers needs and desires.
 Societal marketing concept- This concept holds that marketing strategy adopted by the
firm deliver value to customer in such a way that improves customers and society's well-
being. McDonald produce products in such a way that doesn't harms the environment
and society and should adopt sustainable marketing concept which assist in meeting and
preserving current and future needs of customers. Trend in marketing includes virtual
reality which the respective company also uses as a way to create awareness about overall
brand messaging and targeting potential customers and passing message that the products
manufactured doesn't harm society and environment.
2. Overview of different marketing processes
Marketing process involves decision taken by the company to provided products that
provides maximum customer satisfaction. It involves analysing opportunities, selecting target
segments, determining price and managing all marketing efforts.
McDonald main aim is provide quality products to the customer and enhancing its good will in
the market.
 Analysis of opportunities in market- This step is concerned to analyse the market and
to find the opportunities that should be availed. opportunities are the one which can make
the firm ahead of its competitors. . This enables McDonald's to effectively run for long
term by satisfying needs and desires of individual (Clow and James, 2013).
 Selection of Target Market- It is the most important process in which target customers
are selected. It is obvious that McDonald's doesn't satisfy needs and wants of whole
market segments. It divide the whole market into different segments and choose the
segment which would meet its strengths and opportunities. Target market for the
respective company would be customers including parents of young children's, teenagers.
In this regard McDonald should effective conduct market targeting and positioning of its
products.
 Development of marketing mix- It includes decision taken by the company to increase
customer awareness about its products. . It is composed of 4 p's that is product, price,
place and promotion that the respective company uses to implement strategies and

develops a effective marketing programme to provide greater customer value and
accomplish business objectives.
 Management of marketing efforts- It is usually the action phase of development of
marketing program in which marketing mix is developed for the target segments (Dibb
and Simkin, 2013). McDonald uses various marketing efforts such as advertising and
start promoting its products in order to create awareness to the customers about the
product. This is the final stage of marketing the products.
Company has incorporated the use of SOSTAC model in order to determine its current situation
and states objectives and develops strategies in order to achieve targets.
 Situation- It describes the present position of the company, it could be analysed with the
help of Swot analysis. McDonald is serving the needs of the customers properly has a
good positioning in market but has a weakness that satisfies only the needs of teenager
and dissatisfies other target market.
 Objectives- Its main objective is to introduce new product which targets health conscious
people in the market which attracts other target segments and captures 25% of market
share in upcoming 6 months.
 Strategy- Respective company has adopted promotional strategy and low cost pricing
strategy in order to make customers aware as well persuades them to purchase quality
products at low prices.
 Tactics- It describes the detailed strategy that is the effective use of marketing mix such
as supplying the product at the right price for the set target market. Mc donalds when
introducing a new product should set the reasonable prices with promotion tools in order
to attract customers.
 Action- This ensures the execution of plan in a effective manner so to capture the market
share by providing quality products,
 Control- It refers to monitoring and measuring the plan execution and checking whether
the plan would be able to achieve set objectives or not.
3. Roles and responsibilities of marketing manager in context of the organisation.
Marketing manager is an individual in the company who manages the marketing of a
business or a product. Marketing manager of McDonald's is responsible for carrying marketing

activities like branding, product promotions and new product development. Roles and
responsibilities of marketing manager at McDonald's are described below-
 Collecting and gathering market research information in order to determine quality and
quantity of production to analyse and meet customer expectations.
 It has the responsibility to determine sales forecasting and according do product planning
and price fixation.
 They have the responsibility to promote their products by a way of advertising in
newspaper, televisions and other social networking sites as to create awareness about its
products.
 They are responsible for developing effective marketing strategies and plans for
effectively meeting customer needs and wants and also responsible for controlling credit
policy of the firm and the cost of marketing activities.
4.How marketing influences and interrelates with other functional departments of the
organisation.
In every organisation marketing influence needs and wants of individual and therefore it
works in coordination with other departments of the organisation. Marketing and its interrelation
with other functioned units are explained below-
 Marketing and Production department- Production is a vital component as it is
concerned with conversion of raw materials into finished goods. Marketing by analysing
needs and wants of the customer and the requirement of product in the market provide
information to the production department to produce goods accordingly. By analysing
current trends, marketing provides information to production department to produce
goods according to changing demands and existing trends (Fırat, 2013).
 Marketing and Human resource department- HRM of the respective organisation is
responsible for hiring and maintaining suitable workforce. Marketing department
analyses the need for skilled manpower and provides information to HR of McDonald.
Marketing provides such information to HR of Mc Donald which allows them in proper
recruitment of employees.
 Marketing and finance department- Finance department is the backbone of every
organisation. Marketing and finance department are interrelated to each other. Marketing
perform functions of advertising and promotion of its products as well responsible for

sales forecasting. This provides information to finance department as to produce products
in the future course of time and makes the department realise for the need of funds. They
also take funds for advertising and promotion from finance department. This will assist
the performance of activities within each department at McDonald in effective manner.
5. Value and importance of the marketing role in the context of the organisation.
Marketing has a greater value and importance as by identifying needs and wants of
consumer and by supplying products accordingly. Importance of Marketing at McDonald's is
described below-
 Marketing assist in higher sales- Product awareness of McDonald's will result in higher
sales. When the company promotes its products it leads to increased awareness among
customers which persuades them to buy the product and leads to higher sales for the
company.
 Marketing enhances company's reputation- Promotion of quality and innovated
products helps in increasing awareness it will assist company to build standard
reputation in the mind of customer and will increase its productivity and profitability
(Ionita, 2012).
 Marketing act as source of new ideas- With rapid changes in taste and preference of
people , marketing concept comes up with new ideas which assist them to produce goods
accordingly thereby helps in the development of economy.
There is a greater value of marketing role in context to the respected organisation as it assist the
company in identifying the needs and wants of customer and provides products accordingly,
thereby helps in generating more revenues for the company.
6. Conclusions that emphasise the significance of having effective interrelationships between
different functional departments.
It has been analysed that there is a great importance of having relationship among
different functional departments. Marketing when coordinates with human resource, finance and
production department it provides significant information to them which assist the company in
effectively producing goods according to customer needs and desires. Effective communication
among department will lead to improved customer service as well as reduces the conflict the
employees and would lead to better efficiency in its work by targeting more customers and
achieves maximum profitability.

7 Compare the ways in which the chosen organisation applies the marketing mix to the
marketing planning process to achieve business objectives.
Marketing mix refers to the set of actions and decisions taken by the respective company
in order to promote its product in the market. It includes 7p's which are product, price, place,
promotion, people, process and physical evidence which the company buses in order to achieve
success and attains maximum profitability.
Basis McDonald Burger King
Product McDonald is known for its product as
they consider and respect the culture of
people. Their product segmented into
veg, non – veg burger, beverages, chips
and frozen desert. In accordance with
product profile business objective is to
make customer's money is worth
spending in McDonald to satisfy their
hunger (Khan and Adil, 2013).
Burger King has started its business by
producing different products such as
hamburgers, French fries and milk
shakes. Apart from this company also
offers chicken and fish as alternatives. It
assists the company to achieve
economies of scale through large scale of
production to limited number of product
lines.
Price This element is very significant in
attracting the customers. Low price leads
to increase in demand of the product and
vice versa. McDonald's sell their
products in affordable price, so that all
category of people can fulfil their wants.
Their product price ranges from
Rs.50(veg) to Rs.100 and above(non-
veg). They follow psychological pricing
strategy or bundle pricing.
Burger king pricing strategy is mainly
based in generic strategy of cost
leadership. It also uses market-oriented
pricing strategy which sets prices based
on market supply and demand
conditions. Product price ranges from
Rs.49 and above.
Place McDonald is located in all prime
location i.e. shopping complex, mall and
it covered almost big cities which is very
much convenient for people to refresh
Products of Burger king are available at
all its restaurants as well has its stores in
all prime locations. Customers can also
place order on company's website for

their mind. Now it offers the facility of
home delivery which became more
easier to customer.
home deliveries (Lane, 2015)
Promotion This method is use to reach out the end
user through different ways like direct
selling, advertisement, social media etc.
McDonald advertised their product
through TV, radio, online posters,
newspapers, magazines etc. It has
targeted the children by providing small
toys with meal to them. They also give
lucky draws, scratch cards to promote
the products (Lipsman and et.al., 2012).
Burger king uses various tools to
promote its products. It uses advertising
in newspaper and TV and sales
promotion in the form of discount
coupons and other offers through its
website in order to attract larger
customer base.
People McDonald is mainly focused on
maintaining employee standard . It
serves fast friendly service and they has
standard uniform for employs which
shows equality in working environment.
People plays an important role in
handling and managing brand. In order to
motivate their employees to perform
effectively, company give stars as per
their performance.
Physical
Evidence
This mix not only affect the impression
of outsiders but also impact the growth
of company. McDonald has excellent
infrastructure inside and outside as they
maintain clean and hygienic atmosphere
by wearing gloves and caps. Their
maintenance of building, kitchen and
restaurant equipment’s are well known
and it established in good location which
attract the attention of customer.
Physical evidence not only effects the
impression of outsiders but have an
impact on the business. Company has a
good infrastructure inside and outside
because of its clean and hygienic
atmosphere. Burger king have a good
appearance outlet with proper use of
colours and technology in order to attract
customers (Malhotra, 2015).
Process McDonald has structured process as they
manage and operate their all activities in
Burger king has well transparent
manufacturing system which involves

an effective, efficient way. They are
transparent to their customer as they
provide the facility of checking
ingredients which get used to cook food.
the use of most efficient cooking
equipment’s and new methods of food
packaging and distribution.
8 Produce and evaluate a basic marketing plan for the chosen organisation
Marketing plan is a comprehensive document or a blueprint which develops action plan
and strategies and develops tactics in order to attain business objectives. Its marketing plan
includes developing a new burger and will attract people who are health conscious as it will use
more fresh vegetables with American cheese, keeping in mind health of people and use
ingredients which are not much spicy.
Vision- To be a company of high reputation recognised by superior standardised quality of
products (Papasolomou and Melanthiou, 2012).
Mission- McDonald mission is to become customers favourite place as to way to eat and drink
by supplying high quality products.
Objective- Main motive of McDonald's is to launch a new product and attract larger customer
base which assist in achieving maximum profitability. SMART objective for the respective
company would be-
“To capture market share by 25% in upcoming 6 months by providing high quality products”.
STP approach
Segmentation- It is the process of dividing of population into certain different market
segments in order to provide products accordingly. Market segmentations are usually done on the
basis of geographical, demographical, behavioural and psycho graphical characteristics of
customers. Mc Donald's usually uses demographic segmentation strategy to provide products
accordingly (Pike, 2015). As it is introducing new product in the market it will use psycho
graphic segmentation which focuses on customers lifestyles and attitudes and targets more health
conscious people.
Targeting- Targeting is defined as selecting the most appropriate market segment and
providing products according to their needs. For its new product it is mainly targeting health
conscious people and the teenagers.

Positioning- It refers to the selection of marketing mix which is most suitable for target
segmented. It is concerned with how the brand is being perceived in the minds of customer and
how it is distinguished from the competitors’ products. McDonald's uses adaptive style of
product positioning according to changes in target segment. Hence, with the help of various
advertisement and promotional tools McDonald's has created good awareness of its products and
has created good image in the mind of customer. In order to create awareness about its new
product company will use advertisements in newspapers and television as well display the image
of the new product inside the store in order to create awareness (Pike, 2016).
SWOT Analysis
Below is the swot analysis of the McDonald's which will help in launching a new product
according to company's strengths, weaknesses, opportunities and threats.
Strengths-
 It is one of the biggest brands in providing products in fast food sector.
 It has a good financial strength which allows them to develop new products and attracts
large customer.
 It has a good domestic and a global reach by providing products according to
demographic style of consumers.
 It has a good brand recognition with wide range of products with unique taste all over the
world.
Weaknesses-
 It has an unhealthy food image in the minds of customer which creates a negative
impression in the minds of customer.
 Its product mainly targets to teenagers which sometimes dissatisfies other target
customers.
 Price of the product is competitively high which discourages customers to purchase it.
Opportunities
 Brand can make changes in flavour of its products in order to target more customers.
 New product introduced in the marketing plan will produce healthy and low-fat products
which will attract more customers (Wirtz, 2012).
 Respective brand could make joint venture with other super markets which will assist
them to increase its profitability.

 Continued focus on corporate social responsibility will reduce impact on environment
and community thereby enhancing productivity.
Threats
 It has a threat of competition from Burger king (Purvis, 2015).
 Lack of health-conscious product decrease the sale of McDonald products therefore firm
has planned to launched burger for health-conscious buyers considering their
expectations.
 Recession in economy may affect the retailer sales.
Marketing mix for new product-
 Product- The new product introduced by the company is a burger which would be more
tasty and crispier and will attract people who are health conscious as it will use more
fresh vegetables with American cheese.
 Price- It refers the amount the customer has to pay in order to purchase the new product.
Price for the new product would be Rs 45/-
 Place- New product will be available at all its prime locations as well as in shopping
malls moreover there would be facility of home delivery.
 Promotion- Company will make use of social media tools as well as advertisement in
television in order to promote their promotes to increase awareness.
Marketing programme
It is the programme for taking the decisions to undertake various strategies as to achieve
objectives within specific time with the use of available resources. Relationship marketing and
social media marketing would be best for the company to increase customer loyalty and
interaction for long term engagement with the McDonalds.
Marketing Budget
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 8000 11000 14000 10000 11000

Investment 4000 19000 25000 35000 18000
Total 12000 30000 39000 45000 29000
Marketing outlay
Promotion 13000 4000 9000 10000 4000
sales publicity 2000 6000 4000 4000 4000
Direct selling 4000 15000 7000 4000 8000
Total 19000 25000 20000 18000 18000
Monitoring and evaluation- It is the duty of marketing manager to analyse and monitor each
and every marketing activity which needs to be executed in order to achieve desired targets.
Though proper guidance should be given to all marketing members so as to execute plan in a
proper manner.
Effectiveness and Ineffectiveness of elements of Marketing Plan
Effectiveness of Marketing Mix- It provides the respective company a valuable guidance
regarding resource allocation and management of funds so that new product can effectively be
positioned in the market and enhances the brand image of the company.
Ineffectiveness of Marketing Mix- It doesn't considers the unique elements within the product
and doesn't leads to build effective relationship with the customers.
Effectiveness of Action Plans- Action plan enhances the self confidence of the marketing
manager of the respective company as it contains various steps and procedures which allows
them to perform their activities in a proper manner.

Ineffectiveness of Action Plan- It reduces the probability of planning and reducing future
uncertainties as the manager of the respective company work according to the procedures and
steps as planned.
Effectiveness of Marketing Budget- It assist the company regarding proper resource allocation
and conducting the marketing activities within an appropriate budget amount.
Ineffectiveness of Marketing Budget- Working within the allocated budget makes it difficult for
the respective company to conduct its activities as the wityh ongoing changing trends, marketing
budget also changes.
CONCLUSION
It is determined from the above report that marketing essentials plays an important role in
identifying needs and desires of the customer and thereby assist the company in providing
products accordingly. Marketing manager has effectively used marketing process and concepts in
identifying demand of the target customers which will assist in achieving business goals and
objectives. It is crucial for the company to analyse the future and current marketing trends.
Along with this effective use of marketing mix will help in comparing products with those from
competitors’ products which will assist in maintaining profitability. The study concluded with
marketing plan of firm for new product development.

REFERENCES
Books and Journals