Marketing Report: McDonald's Global Strategies and Analysis

This report offers a detailed marketing analysis of McDonald's, examining various aspects of their strategies. It begins with an introduction to marketing principles and their application within the company, followed by an exploration of the elements of the marketing process, including target customer identification, product development, and effective advertising and distribution. The report then delves into the costs and benefits of a marketing orientation, followed by an analysis of macro and micro environmental factors affecting McDonald's. It proposes market segmentation criteria, targeting strategies, and an examination of consumer buying behavior, with a focus on McDonald's positioning strategy. The subsequent sections cover product development for competitive advantage, distribution and pricing strategies, and the planning of the marketing mix for different market segments. The report also contrasts marketing products and services to businesses versus consumers and explores the differences between domestic and international marketing approaches within McDonald's, providing a comprehensive overview of the company's marketing practices.

MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Elements of marketing process.........................................................................................3
1.2 Cost and benefits of marketing orientation.....................................................................4
TASK 2............................................................................................................................................5
2.1 Macro and micro environmental factors...........................................................................5
2.2 Proposing with segmentation criteria...............................................................................7
2.3 Choosing targeting strategy..............................................................................................8
2.4 Determining different buying behaviour.........................................................................8
2.5 Positioning strategy for McDonald..................................................................................9
TASK 3..........................................................................................................................................10
3.1 Development of products to ensure competitive edge in the market ............................10
3.2 Different distribution strategies........................................................................................1
3.3 Various pricing strategies.................................................................................................1
TASK 4............................................................................................................................................3
4.1 Planning marketing mix for two different segments for McDonald................................3
4.2 Difference in marketing products and services to businesses rather than consumers......5
4.3 How international marketing is differs from domestic marketing in McDonald.............6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing is just not to sale of the products, it is having a broad meaning related to the
products and services. In the earlier times a company use marketing tool just to sale their
products and services, the company is highly focused to make higher sales. So this is making a
bad situations for them because their products are not completing the expectations of their
customers. In the contemporary world scenario most of the big companies are using the
marketing in wider area. Marketing process starts with the idea of making a goods and services.
The owner and a manufacturer have to use this latest marketing tool with making analysis of
market needs and customers needs (Hawkes and Harris, 2011). After it they have to develop their
goods and services. Promotion and distribution are the main concept of the marketing strategy
and this have to be effective. This project report is based on the McDonald's which is having
affair in the food industry. The company is having a wide range of Pizza, Burgers, Puffs and
coffees, they are having more than 36,000 outlets in across the world. They are using an effective
marketing and they are having different marketing policies in different teams. They are making
distinct products and service styles in different countries and it is an example of marketing in the
food industry. This report is having content of marketing elements and benefits and cost of
marketing orientation. Micro and macro environmental factors are making a direct impact of the
companies activities and they have to adopt these affects in their business and production.
TASK 1
1.1 Elements of marketing process
McDonald's is using the latest marketing tool which is helping them to sale and fulfil the
customers expectations and here is element;
Target customer: In the first, company is making target of customers. Many types of
customers are available in the markets and this is depends on them that which type of customers
to take as a target by the company. They are having generally two types of customers poor and
rich. Mostly company is making focus on the high and middle class peoples. They are having
sufficient money to afford the expenses so this is easy for McDonald's to fulfil their
requirements.
Product Development: After making target they are developing products and services
according to their targeted customers (Jobber and Ellis-Chadwick, 2012). Most of the persons

wants a general tastes but they are having differentiation in the prices so they are making distinct
packages and prices of their products. They are adjusting their prices according to the customer's
financial conditions.
Effective advertisements: The company is making their all activities according to the
customers demands and which can attract them. They are using classifications of their customers
on the basis of their mediums which are suitable for them to communicate about new products
and available price range. They are using effective communication tools like; print media and
electronic media. They have to make distinction according to customers facilities.
Selling and distribution: This is the main part and they are using the both online and
offline process to sale their products (Kelleher, 2011). They are having both type of customers
who wants the home delivery of foods and who wants to go for outing. They have their outlets in
the big markets which are suitable for the customer's.
1.2 Cost and benefits of marketing orientation
Marketing provides number of benefit to company to achieve sustainable growth. There
are various merits which describes as per under:
Benefits of marketing orientation.
Identify the demand: Through adopting marketing concept organisation can find out the
desire of customer in targeted market which contribute to deliver desirable value to satisfy their
need and also enterprise can meet with predetermined goals.
New market opportunity: As being a global brand MacDonald can enter in new reason
though marketing concepts. The model of marketing helps to identified interest of customer that
is essential for the growth of company. In some nations by used this concept organisation can
deliver their needed product and service to cover new market for its product (Kotler and et.al.,
2015).
Capture appropriate market-share: The concept of marketing is focus on the customer
interest rather profit. It helps to understand the requirement of customer which assist to company
to produce it to satisfy them by provide qualitative product and service at affordable price. It also
aids to increase sales revenue to captured large market-share as well as defeat competition
against rivalries.
Cost of marketing orientation: As mentioned above, Mc Donald's is following marketing
orientation for exploiting maximum benefit of emergence of International business market.

However, continuing with this strategy to pull maximum customers requires for the cited
company to incur costs on various marketing aspects. The concept of marketing orientation
mainly focuses on acquiring higher market shares by funding different marketing activities
mentioned below:
 Cost required to be incurred on researching market: Acquiring information and data with
respect to customer's preferences and needs is an important aspect of marketing.
Information resources including customers feedback can provide a clear picture of what
is expected in the market.
 Cost incurred for carrying out promotional activities: Marketing orientation focuses on
attracting customers on a large scale for acquiring increased market share, by using
promotional means of advertising and sponsorship (Lee and Kotler, 2011). These
activities are highly effective in pulling potential customers that requires investing of
available funds.
TASK 2
2.1 Macro and micro environmental factors
The macro and micro environment factors have a greater influence on McDonald for
taking the decisions for the company. Thus, for evaluating the internal factors SWOT analysis
tool is been used to identify the internal strength of the company:
Strengths
 It have renowned brand image in the
market.
 It is serving with wide range of
products which attracts large number of
customers.
 It is having a high balance sheet
position (Lefebvre, 2011).
Weaknesses
 With the emergence of new companies,
the market share of McDonald is
declining at a higher pace.
 The development of new products is
weak.
 With the time, the quality and taste of
the products is been reducing.
Threats
 It may suffer in the strength of
competition.
Opportunities
 To develop with dining-out market.
 To expand there business all over the

 The demographics are changing with
the time.
 High competition rate due to other new
companies.
world.
 It should respond to the upcoming
social changes in the market.
Further, for analysing the macro factors PESTLE analysis is been used in an efficient
manner.
Political
 International trade
provides opportunities
to expand the srervices
of organisation at
global level increasing
the revenues for firm
 The company has to
make reform in its
strategies as
government of many
countries are making
laws against health and
safety standards. The
increasing awareness
among consumers for
health and fitness have
forced the government
to make control on
junk foods.
Social
 The innovation and
varieties in junk food
menu has increased a
lot due to various
preferences of
customers. This makes
competition fierce
among fast food
industries.
 Increasing
consciousness among
customers for fitness
and health made them
to avoid junk food and
shift to healthy meals
which may affect the
sales of firm
(Leonidou, Katsikeas
and Morgan, 2013).
Economic
 The company should
make the right decision
to make or buy as it
operates in different
countries so tax rate
use to fluctuate.
 The cost of labour in
different countries use
to vary for which the
organisation should
make strategies so that
cheap labour can be
arranged.
Technological
 The innovation in
technological fields can
Legal
 The fast food industries
are exposed to a large
Environmental
 The packing material
used by cited firm

assist the company to a
large extent. With the
help of improved tools
and techniques,
enterprise can increase
productivity and
deliver faster services.
 Management of
ordering, delivering
and payment system
can also be arranged in
more systematic way
that can improve its
revenues.
number of laws that
should be complied
with like food and
safety standards,
employment laws and
tax payment systems.
increases the wastage
and also pollute the
environment because
of which many
environment conscious
customers use to avoid
the consumption of
food from this
company.
 Use of paper bags and
organic ingredients in
food can help in
improving the
condition.
These models are highly efficient in influencing the company to make the decisions for
performing the activities in a proper manner. Thus, it will help them to develop with the
strategies and plan which will provide them with high efficiency and develop with high quality
products.
2.2 Proposing with segmentation criteria
To ensure the growth and development of the company, it is very important to provide
with the products which may satisfy the customer to a greater extent (Lovelock, 2011). Further, it
is crucial for McDonald to efficiently evaluate the market segmentation so as to develop with the
products and services for a certain group of people. The following are the major basis for
segmenting the market:
 Demographic- It mainly includes the factors such as race, age, religion, income, gender
etc. Thus, it is very important for the company to evaluate with the disposable income of
the country in which they are serving with there products and services as it will assist
them in developing with the goods which is affordable for them. For example, the
country which is having low economy than it is important for the company to serve them
with cheap products to attract the customers (Lusch and Vargo, 2014).

 Geographic- It refers to the segmentation of the market on the basis of its geography. It
mainly involves the areas, region, countries etc. which have a great impact on the
operations of the company. Thus, it becomes important for McDonald to develop with the
products by evaluating the taste and preferences of the customers so that it can provide
them with high satisfaction. For example, serving the food in India the company needs to
provide with vegetarian range of products as they mostly prefer veg food.
 Behavioural- The company make the proper analysis for determining the attitude,
behaviour etc. of the customers so that they can serve them with the most efficient
products. Thus, McDonald must take several measures to check out the behaviour of the
customers.
2.3 Choosing targeting strategy
McDonald chooses the behavioural factor for serving there products to the customers. As
the company is serving in many countries, so it becomes important for the company to the
attitude of the people towards the consumption of the products. Thus, they are targeting the
people who are preferring healthy food items in there meal. As in the present situation people are
becoming more health conscious and are avoiding fast food so the company have to develop with
the products which are having high nutrition value to them. Thus, it becomes important for the
organization to develop with the range of the products which are healthy in nature and serves
with high satisfaction level to the customers (Meraj, Fernandes and Ross, 2016). Further, for this
McDonald have to evaluate with the items which are on the core preference of the people.
Moreover, they need to change with the process of production for the development of the
products. They must come up with the products such as healthy salads, burger with veggies and
healthy drinks like fresh juices etc. This will help to attract wide range of customers towards
there organization. Further, they need to set lower prices for these product at the initial stage so
that it is highly affordable for the people.
2.4 Determining different buying behaviour
Buying behaviour refers to the perception of the people which assist in determining with
the attitude and value for the purchase of the goods. Thus, every person takes the decision before
the purchase of the products. Thus, there are various types of buying behaviour. Some of them
are stated under:

 Complex buying behaviour- It involves with the products which are of high value and
requires more time for taking the decision regarding making its purchase. Further, it has
high level of involvement as the products are of high cost. It includes cars, house etc.
 Dissonance buying behaviour- It involves with the products which are of crucial value
which means that it is available with limited edition so the value of these products
increases. In this, they have high involvement in making the decision for the product
(Mintz and Currim, 2015).
 Habitual buying behaviour- In this the degree of involvement towards the purchase of
product is very low. As these are the regular things which the customers purchases
frequently. The products of McDonald is included in this category as they are of less cost
and people consume them on regular basis. The marketing managers need to develop
with the products which gives high value to the people and are highly affordable to them.
So they must also evaluate with the taste and preferences of the customers and make the
goods according to them so that they can satisfy the people to a greater extent.
2.5 Positioning strategy for McDonald
Product positioning is very crucial for the company as it is an important marketing tool
which help to attract large number of customers towards there organization. Thus, in the present
time, the demand for healthy products is been increased and many company has taken initiatives
to serve the people with healthy products. Further, for promoting this product they must develop
with effective advertisement through different means such as television, pamphlets, website etc.
Thus it must be ensured that the ad must be so attractive that it must appeal the customers to
have the product. Thus, they must provide with the major features of the products and the
additional value which the other competitors are not serving (Palmer, 2012). Further, in the
online website there must be different column for the range of healthy food items so that it
becomes easy for the customers to select there product. Moreover, in the physical outlet they
must develop with different segment for this which may provide with only healthy foods so that
the people who prefer them do not have to wait for longer time. Moreover, they must also
provide some offers like with veggie burger, one glass of fresh juice free so as to attract wide
range of customers towards there organization.

TASK 3
3.1 Development of products to ensure competitive edge in the market
It becomes difficult for McDonald to retain its position in the industry as there are many
other companies which are serving with similar products to the customers. Thus for attaining the
competitive edge in the market it is important to develop with the products which are unique
from its competitors. The concept of product is applied in a unique way by the organization. The
development concept for the product is been adopted by McDonald in the determined manner: Core product: This layer refers to the evaluation for McDonald where the company seeks
for the demands for the certain products within the market and take efficient measures to
meet these demands. This layer majorly focuses on development of the product available
at adequate price to the consumers. For examples increasing demands for healthy food
items will be attaining by developing wide range of food items which enhances the sale
volume of the company. Expected product: This layer of product development is achieved by the organization by
checking the quality and standards of the products which are been served by the
company. In this, the organization highly examines and investigate the product standards
to make sure that the products are of high quality and as per the determined quality
standards. The company also focuses on analysing the packaging, features and styles of
product (Rahbar and Abdul Wahid, 2011).
 Augmented product: This layer of product development gives importance on the
development of consumer convenience so as to increase with the sales volume in the
market. It is been seen that the services are highly prompt enough which develops high
value for McDonald. This helped the business in enhancing wide sales measures.

Illustration 1: Product concept
(Source: Rahmani, Emamisaleh and Yadegari, 2015)

3.2 Different distribution strategies
The following are the major distribution channels which are mainly adopted by
McDonald are as follows: Intensive distribution: This distribution strategy of the organization mainly focuses on
the development of the products and services which are available within the market to
enhance market sales. McDonald is highly successful in developing an efficient supply
chain management to serve with the products to the customers in a easy manner. This has
helped the business in creating an competitive edge in the economy. For this measure the
organization uses online websites and physical stores. By this, the people can book there
order by the means of internet and the parcel will be delivered to them at there respective
places. Selective distribution: This measure is the one where the business unit develops with an
effective measure for analysing the needs of consumer and developing measures to attain
the product (Sferle and et.al., 2012). For this McDonald has developed with the Drive and
through facility for the customers who just need to take the parcel. This provides with
greater assistance to the people as they do not have to wait for longer time for there
parcel.
 Exclusive distribution: This distribution of the company focuses on developing
distribution agreements with other people so as to develop with the brand image in the
market. They can develop licensing form so that many people can open up with the
company to serve the people with greater assistance.
3.3 Various pricing strategies
Pricing strategy is one of the most crucial factor which must be taken into consideration
while developing the product. Further, the pricing strategy mainly involves with two major
forms, one includes with the perspective of the profitability of the company and other is the
perspective of enhancing the sales volume by attracting wide range of customers. The pricing
strategies helps the company in developing wide market demands and enhance sales measures as
well. In essence this is one of the main source through which the aims and objectives of a
business unit can be achieved in an effective manner. McDonald determine with the pricing
strategy for the product by considering large number of factors such as competitors price,
disposable income of the country and the demand for the product in the market. This assist the