Marketing Report: McDonald's Strategy and Competitor Analysis

This report provides a comprehensive analysis of McDonald's marketing strategies. It begins by outlining the key roles and responsibilities of the marketing function within the organization, emphasizing customer satisfaction, social media management, trend tracking, budget management, and strategic marketing plan development. The report then explores the relationship between the marketing department and other organizational functions, including production, finance, and sales, highlighting how marketing efforts support and influence these areas. A significant portion of the report focuses on the application of the marketing mix (product, price, place, and promotion) to achieve business objectives, with a comparative analysis against a key competitor, Burger King. Finally, the report concludes with the formulation of a basic marketing plan for McDonald's, summarizing the company's objectives, strategies, and target markets.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Key roles and responsibilities of the marketing function......................................................3
P2 Explain how roles and responsibilities of marketing relate to the wider organizational
context.........................................................................................................................................6
TASK 2............................................................................................................................................7
P3 Application of marketing mix to achieve business objectives along with comparison with
competitor...................................................................................................................................7
TASK 3..........................................................................................................................................10
P4 Formulation of basic marketing plan for an organisation ...................................................10
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Marketing is refer as the activity which involve creating, promoting and delivering of
goods and services to consumers and businesses. Scope of marketing is vast in nature and limited
to products which are available in store. In terms of organization, it is basically used for the
purpose of satisfaction of customer needs. There are many functions which are performed by
marketing department within organization related to promotion, market research, determination
of price and selection of best suited distribution channels. The report has chosen McDonald's as
key organization i.e. an American fast food company founded in 1940. The products which are
provided by them include Hamburgers, chicken nuggets, french Fries, soft drinks, milkshakes
etc.
The present report consist of roles and responsibilities performed by manager of marketing
department and interrelation of marketing activities to wider organizational context (Ahrens,
2011). Also, application of marketing mix for effective planning in accomplishment of desired
objectives along with comparison with competitor and formulation marketing plan is done in this
assignment.
TASK 1
P1 Key roles and responsibilities of the marketing function
Marketing is an important activity that assist in creating, keeping and raising the
satisfaction level of customers. Through this concept, an organization reaches its different
potential users and accordingly meet their demands in the long run. McDonald’s is a huge brand
and operating its operations in different countries. Since it is dealing in the food industry, it come
across excessive competition for which it needs to have an effective marketing department as this
is the most important factor that can help in raising the overall profit ratio of the enterprise. The
marketing concept is developing over the period of time (5 Marketing Essentials for Your
Business to Appeal to Millennials. 2018). Same are discussed below in detail:

Figure 1Marketing Concepts
(Source: Bhasin. H, 2018)
Production Concept – This concept is related to the operations of the organization.
According to this proper monitoring should be kept over the production department of the
company so that the overall cost of the firm can be controlled. It is important as customer are
very much price sensitive and increase in cost may lead to hike in the value of products.
Product concept – According to this theory it is believed that customers buying decision is
based on the quality of products offered to them. Therefore, it is important that good standards
are maintained so that competitive advantage can be achieved specifically in the food industry
where close substitutes are available for the customers (Bellenger, Bernhardt and Goldstucker,
2011).
Selling concept – This is another concept in which more focus is given to the method of
sales adopted by a particular enterprise. There are range of alternatives available with the
organization through which revenues can be generated. According to the nature and type of
customers selling mode is selected which has the capacity to cover greater market share.
Consumer concept – Under this theory of marketing importance to customers is given. It is
assured that on consuming a particular product the satisfaction level of user is maximum as it
helps in maintaining the long term connection with the clients.

Marketing Concept – Last but not the least is the promotion theory of marketing. It works
on the pull strategy as to raise the market share companies need to make their brand so strong
that it is favored over the other present in the same filed.
Different roles performed by the Marketing department of McDonald are as follows:
Customer satisfaction – This is the most important role performed by the marketing
branch. Buyer is the kind of market and to keep them happy is of utmost priority. Through
surveys and other promotions activities demand for the product offered by McDonald is created
and it is ensured that same satisfies the customer to its maximum value. Desire and expectations
of the buyer are recognized which further assist in delivering same and hence sales are
developed.
Monitoring and managing social media – In the present business world, where
everything is digitalized, it is important that the best promotional platform to introduce new
products are used. To compete with other brands like Burger King and other it is required that
McDonald’s use such media marketing which can help in reaching to maximum number of
customer. Marketing department, in this context, plays crucial role. It evaluates the different
options available within the company and thereafter take the best suitable decision regarding the
promotion of products (Bird, 2012).
Track Trends and monitor competition – There are a range of competitors for
McDonald’s who are offering very close substitutes in the market. Therefore, it becomes
essential to monitor the strategies and operations of other brands so that competitive advantage
can be maintained. Advertising and marketing division, in this perspective, sees that all the
different departments of the referred organization are working with the latest trends of the market
so that a good position can be maintained by the brand in its field.
Manage marketing budget – Business surroundings are dynamic in nature as it is affected
by a range of external factors. Marketing department does the analysis of the present situations
and accordingly help in preparing the long term budget keeping in mind the possible change that
may take place in the coming time. This way the probability of establishing a successful budget
raises and hence accordingly arrangements for the funds are made which eliminates the risk of
non-availability of funds (Langer and Heil, 2015).

Defining strategic marketing plan – To achieve success in business it is required that
effective marketing plan is made and the most cost-effective strategies are those that are planned
for the long term. To do so, marketing department of referred enterprise draft a document setting
out the objectives to be achieved in the following months; actions that are to be undertaken; the
strengths of the company; competition and the target markets. In addition, these strategic plans
are also aligned both with the strategic plan of the company and with other departments’ plans.
P2 Explain how roles and responsibilities of marketing relate to the wider organizational context
MacDonald’s is a huge organisation having a range of departments who are responsible
for their particular areas of concern. Though the role of each division is different but there is a
direct relation of each with the marketing department of the company. It helps the other sections
in carrying out its operations with more efficiency. The relation of marketing in the wider
organisation context is discussed below.
Marketing versus production – Production of right quality and quantity of products is of
great importance as it helps in maintaining continuity in supply and also saves storage cost for
business. Marketing department does the study of external trends and communicate the possible
demand for the products of MacDonald’s. Accordingly, the production department carry out its
operations and ensures that it does not go out of stock. Apart from this to compete with the latest
products coming up in the market production department needs to be provided with the
knowledge regarding same. It is also done by the marketing department and hence this way it
takes the business to next level (Brooks and Simkin, 2012).
Marketing versus finance – To control the overall spending of firm is of great
importance as it has direct influence on the profitability of business. There are different options
which are available in the market through which funds can be raised to carry out the day to day
operations. Marketing department helps the finance division in taking this decision and ensures
that best returns are earned on investments. Apart from this through market survey the possible
expenses which may occur in future are also communicated to the finance department of the
organisation so that accordingly they can make the arrangements. When there is effective
coordination among both the department’s budget for a particular year is also made in an
appropriate manner which has higher chances of being implemented in the same manner.
Marketing versus sales – Selling is the most crucial activity for MacDonald’s or any
other enterprise. It is important that planning regarding sales is done in such a manner that

maximum volume of sales is made. There are range of options which are available with the firm
to market its products in the market and the marketing department plays vital role in this
concern. It evaluates that using which tool products can be introduce so that it can cover
maximum market share. It is ensured that the customers do not find it difficult to find the brand
and can easily get access to same. Thereafter the possible sales are also predicted in advance
which helps evaluating the situation of non-availability.
TASK 2
P3 Application of marketing mix to achieve business objectives along with comparison with
competitor
Marketing Mix: It is considered as basic model to conduct marketing activities. This tool
is used by an organization to pursue their marketing objectives and targets. According to the
conditions which are present in target market, various approaches are framed by marketing
manager for these different P's (Cabrera and Williams, 2014). The basic purpose which was
fulfilled from use of marketing mix tool is to aware prospective customer about the service and
product. This will help the management of organization to take strategic decisions while
launching new products or redaction of existing products. McDonald's is American food
organization having their business activities in all over the world. The company is conducting
marketing mix to make effective plans regarding different important perspectives such as
product, place, price and promotion which extended to process, people and physical evidence.
Earlier planning of marketing activities help the organization to do better from their competitors
and attain competitive position in market. To ascertain the effectiveness of their marketing plan,
McDonald's decided to compare it with Burger King. This will enables them to identify
weaknesses in their plans and take better steps to improve their competitive position (Kennedy
and Parsons, 2014).
Marketing Mix of McDonald's and Burger King
McDonald's Burger King
Product: McDonald's deal in various product
segments such as vegetarian, Non-vegetarian,
Beverages and Frozen deserts etc. The main
emphasis provided by the management is to
Product: The product range of Burger king
covers different type of products for different
age group of people. The items which are
offered by this restaurant includes burgers,

develop the menu as per wants of customers.
Research about market helps in determination
of actual trends which are persist in market. It
is assessed that customer's requirements are
changed continuously over the period of time.
To meet out the needs of different segment of
customers, it is required to introduce new
products and phased out old ones. Management
of McDonald's knows that popularity of their
items in menu will vary over the time. This
will impacts their ability to generate profits at
different points in their cycle.
beverages, milkshakes etc. Burger king
provides product in both veg and non veg
categories. They also start offering salad and
veggies for diet conscious consumers (Jones,
2011).
Price: Pricing will help the organization like
McDonald's to charge accurate price which
satisfy the different needs of customers persist
in various segments. For ex., if low price was
charged for their products then customers
having the perception that quality
compromised. It is important for McDonald's
while deciding the prices fully aware about
value of their brand in market. Differentiation
pricing policy is adopted by McDonald's for
their different type of offerings to tap middle
section of society (Coombs, 2012).
Price: The strategy which is followed by
Burger king for pricing of their product is
market oriented. To effectively compete with
McDonald's, they start providing on quality
with affordable pricing.
Promotion: This aspect covers all type of
method which are used by the organisation to
communicate with customers. The different
type of promotional methods includes
advertising, TV, Radio, Online, poster sites etc.
Some other are known as sales promotion,
Promotion: Basically two ways are used by
Burger king for marketing of their product
includes social media and advertisements
through print media. They also take the support
of different sponsors to spread out their reach
towards customers. Another tactic which is

merchandising, direct mail and loyalty
schemes. These methods are used by
McDonald's to attain effective results. For ex.,
TV advertisements help the organisation to
aware customers about food items and press
advertisements aid in providence of more
detail. At present, main emphasis is provided
on targeting children. In this regard, small toys
are provided along with meal.
adopted by them includes providence of
discount to online orders helps to attract large
number of customer's.
Place: This will covers the aspect about
distribution points for products. In present
situation, outlets of McDonald's are spread out
in main cities which are easily accessible by
end customers. Drive in and Drive out options
are also provided by McDonald's for
convenience of consumers which enables them
to attract in large number (Cooper and et. al.,
2014).
Place: The supply chain network of Burger
King is strong at global platforms. Charge of
appointing suppliers has taken over by quality
control department of Burger King to ensure
best is provided to their customers. Presence of
Burger King is higher in western regions.
Along with physical stores they develop
mobile application to improve reach towards
new customers.
People: The way in which McDonald's treat
their customers and employees in unique.
Proper dress code is followed by employees.
More emphasis is provided on attainment of
customer friendly behaviour. Priority is given
on fast delivery of food items and satisfaction
of needs of customers.
People: Management of Burger king provides
emphasis on both customer's and employees.
They are very keen towards their employee
which shows from the result that customer
satisfaction ratio of burger king is highest in
comparison to other outlets.
Process: Cooking methods and processes used
by McDonald's are improved over the period of
time. New equipments are purchased by
organisation to continue the working of food
processing along with packaging and
Process: The process which is used by Burger
king to operate their functions is designed
internationally by experts. This will helps the
organisation to maintain same taste and work
culture in all outlets operative in more than 71

distribution of food items. Huge amount is
invested in research activities to attain
automated process which brings quality of
working.
countries.
Physical evidence: McDonald's having good
physical evidence which aid in influencing the
mind of consumer. The basic aspects which
depicts physical evidence perspective of
McDonald's includes speed of service,
cleanliness, hygiene etc. It is family restaurant,
so arrangements are made according to their
requirements. As their targeted segment is
children's, they provide happy meal toys to
attract them (Ionitã, 2012).
Physical evidence: Burger king has presence
almost in most of the developed nations. In 71
different countries their outlet is established in
15000 locations. Now, they start expanding
their operations in some developing countries
also like India. This will be considered as huge
opportunity for Burger King as trend of fast
food continuously increasing in developing
nations like India.
TASK 3
P4 Formulation of basic marketing plan for an organisation
Marketing plan is an integral part of overall business plan. It is considered as blueprint
which defines the marketing and advertising activities have to taken by management for the
coming year.
Introduction of company: McDonald is one of the most popular fast food company and
has more than 30000 food outlets in more than 100 countries. Entity offer variety of food items
to its customers including cheeseburgers, French fries, soft drinks, chicken products, deserts and
many more. Today company generate $24.622 billion on annual basis. Entity want to launch a
new food item known as oil free fries for health conscious individuals (Daniel, 2011).
Vision: McDonald’s carry out different business activities with its vision statement
which is “To become a progressive and modern burger organisation to offer a contemporary
customer experience.”
Mission: Company’s mission statement states “To become a favourite place of
individuals where they can eat and drink.”
Marketing objective: McDonald’s marketing objective is:

 To attract more and more heath conscious customers to increase number of its profits by
10%
 To improve overall sale of company’s products by 20% in coming year.
STP: Concept of segmentation, targeting and positioning is utilise by enterprise in order
to determine the market it wants to target and to develop effective policies.
Segmentation: In this, enterprise subdivide the whole population in various groups on
basis of some common features. MsDonald’d carry out segmentation in basis of demographic,
behavioural and psycho-graphic segmentation.
Targeting: Under this, company determine a specific groups of customers. Main target of
McDonald’s is health conscious individuals. By offer them healthy food items company wants to
grow faster ( Friis, 2012).
Positioning: McDonald’s wants to position itself as a food company that offer quality
products to its target audience in order to attract more customers.
SWOT analysis of McDonald’s
Strengths
 Operations in Overseas market
 Strong brand name and reputation
 McDonald’s successive approaches
 Specialised training to managers
Weakness
 Declining market share.
 Slow income growth and revenue.
 Unhealthy food image
 High employee turnover
Opportunities
 Expansion at international level.
 Joint ventures with retailers
 Growth of fast food sector.
 Strengthen its value proposition by
encourage individuals to visit.
Threats
 Changing demographics
 Public health crisis.
 Strong competition
 Fluctuation take place in exchange
rates.
Marketing Budget:
Marketing budget