Report on Marketing Essentials: McDonald's Strategy & Analysis

This report provides an overview of marketing essentials with a focus on McDonald's. It details the different marketing processes, including situation analysis, strategy development, marketing decisions, and implementation and control. The roles and responsibilities of marketing managers are discussed, emphasizing their influence on other departments like production, finance, and HR. The report also highlights the importance of marketing for differentiation, sales increase, innovation, and company growth. A significant portion is dedicated to McDonald's marketing mix, analyzing product, price, place, promotion, people, process, and physical evidence, with a comparison to KFC. Finally, it outlines a marketing plan for McDonald's, covering objectives, target audience, strategies, and implementation, aiming to enhance brand image and customer loyalty. This document is available on Desklib, a platform offering various study resources for students.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
Different Marketing Process.......................................................................................................3
Roles of Marketing managers.....................................................................................................4
Responsibilities of marketing managers.....................................................................................5
Influence of marketing on other departments ............................................................................5
Importance of marketing in an organisation ..............................................................................6
TASK 2............................................................................................................................................7
Marketing mix of McDonald......................................................................................................7
TASK 3..........................................................................................................................................11
Marketing plan of McDonald....................................................................................................11
CONCLUSION .............................................................................................................................14
REFERENCES .............................................................................................................................15

INTRODUCTION
Marketing is a business activity, which organisation undertake to promote their brand
through different tactics like advertisement, selling and delivering of products. It is a method
which involve action to create relationship with their customers. Marketing is the best way of
persuading people for company's product and services. It is a wider term, it consist different
aspects in it. Some of them are product development, sales, distribution methods and advertising.
Current and future trend of marketing is AI integration, art & science for successful marketing
content, digital displayed ads. Today's rapid increase in technology has made a lot of choices for
end users by making them more accessible to the marketers who are focusing more on individual
rather than traditional approach. McDonald is taken to understand the marketing concept, it is a
fast food company working as a restaurant (Adnyana, and Darma,2015). McDonald is an
American based company founded in 1940 and its headquarter is in Chicago, but it is serving all
over the world. In this project report an overview is given on marketing process, manager's roles
& responsibilities and its importance will be explained after that influence of marketing on other
department is also included.
TASK1
Different Marketing Process
Marketing process is a way that help McDonald to find out the unsatisfied needs of
customers and through this process they fulfil consumers need by following a sequence of steps:
Marketing process
Situation analysis In this Company focuses on situation based
analysis for identifying opportunities which
helps satisfying needs of customers. McDonald
view this term as the internal as well as
external analysis of firm in terms of micro
environment & macro environment. In this
evaluation Organisation includes past, present
and future aspects (Ahmed and Rahman,
2015). If through this review company finds

out any gap between customers demand and
current supply, they take it as an opportunity to
satisfy consumer's need. Framework used in
situational analysis is PEST analysis and
SWOT analysis.
Marketing strategy Next process for McDonald, after analysing
situation is to make strategic plans for grabbing
the opportunity. By doing a market research
Company get the information of the market
which help them to select their target segment
and position offering (Astuti, Silalahi and
Wijaya, 2015) Marketing strategy involves
segmentation, targeting, positioning and value
proposition.
Marketing decisions Once marketing strategy is made detailed
marketing mix decisions are made which
include product development, pricing of
product, distribution of goods and promotion
campaign.
Implementation and control At this stage McDonald's marketing plan has
been made, their product has been launched
and now organisation need keep a continue
monitoring & adaptation as per the requirement
to fulfil the customer's need.
Roles of Marketing managers
 Developing marketing strategy: McDonald's marketing manager perform this role, for
which they first identify the needs and wants of their customers so that they can
understand what changes and values they need to add into their products(Bahadir,

Bharadwaj and Srivastava, 2015). While creating marketing strategy company keep a
balance between their objectives, skills resources and changing marketing opportunities.
 Monitoring marketing environment: In this role MacDonald marketing manager
identify the current trend and convert it into opportunity . Global scenario is changing
and affecting McDonald because it is dealing all over the world so they need to monitor
these environmental forces like demographic, socio culture, economic,
technological,political and legal forces(Baker, M. J., 2016).
 Marketing research: Another role that Marketing manager of McDonald perform is
evaluating the market or doing research on market environment. For doing this manager's
can either hire professionals.
Responsibilities of marketing managers
 Responsibility toward enterprise: Marketing managers have some responsibility toward
MacDonald like to achieve the pre determined goals of the company, increase the
revenue of the firm, has to plan, organise, co-ordinate and control marketing activities.
From market research they can decide the quality of production which attract customers.
 Responsibility toward employees: Marketing manager's of MacDonald have some
responsibility toward their employees also, like to make schemes for their welfare, to
motivate them, indirect benefits etc. These things satisfy workers of McDonald which
improves their performance and reduces turnover.
 Responsibility toward customers: Marketing managers of MacDonald also have some
responsibility their customers like to study their needs so that it can be fulfilled, after that
to make proper supplies of food items and to maintain the quality in their products (Fan,
Lau and Zhao, 2015).
Roles and responsibilities of marketing function:
There are different functions of marketing such as advertising and sales promotions,
pricing, market information, financing, risk taking etc. All these functions have major roles and
responsibility in terms of an organisation. As they help an enterprise to accomplish long term
gaols and objectives within given time period. Some important functions will be determined as
under:
Market information: It is a major function of marketing which has role to analysis
accurate information about the needs and wants of customers towards business products and

services. It will also help an organisation to fulfil basic needs and requirement of customers
easily.
Advertising and sales promotions: It is also consider main and essential function of
marketing which has different roles and responsibility. These role mainly related with
advertisement of business products and services in marketplace. As it will help an organisation
by increasing customer base and market share within predetermined time period.
Financing: It is another important function of marketing which play essential role in
growth and success of an enterprise by providing accurate amount of capital. It involves the use
of accurate amount of capital to meet financial needs of agencies dealing with different activities
of marketing.
Influence of marketing on other departments
Marketing is not just selling the product, it consist entire business i.e. all departments are
interrelated with each other, change in one impact the working of other departments also. It has
relationship with :-
 Marketing & production department: Marketing team of McDonald need to work
closely with production team because later need a research on consumer's demand form
former about the quality, design specification etc., so that they can produce goods which
satisfy the need of their customers.
 Marketing & Finance Department: Marketing department of MacDonald is dependent
on its finance team because later make make budgets for former to meet the needs of
research, promotion and distribution. Delay in decision making from one department will
affect the performance of other department.
 Marketing & HR department: these two departments of MacDonald are also
interrelated because Marketing team need people for creating their sales team for which
they need help of HR team in recruiting and selecting the same (Kotler and et. al., 2015)
Importance of these interrelationship
 Build trust between teams: Having a good communication between two departments
create a trust in organisations. Working together creates an environment of family and
every department start trusting the other one which lessen their burdens.
 Increased efficiency of communication: when departments are interrelated, it create a
good communication path between them in which information is exchanged accurately

and departments improve their abilities in different projections. Efficiency in
communication also minimises the chances of misunderstandings and confusions.
 Avoid conflicts: When two departments are working together it reduced the chances of
conflicts among employees because it build a trust among employees working together.
In return this is beneficial for the organisation as it increases its productivity and
performance of employees.
 Organisation's goal: Working together for the common purpose help the organisation in
achieving its goal (Liu and et. al., 2017). Interrelation among different departments help
company to achieve its objective.
 Better customer service: Interrelationship among different departments is important for
providing better services to their customers by coordinating with each other it enhances
the productivity of company and provide quality service to their customers.
Importance of marketing in an organisation
 Differentiate from competitors: Importance of marketing in MacDonald is that it help
the company to look different from their competitors because of the great advertisement
and services they provide.
 Increase in sales: Another importance of marketing in MacDonald is that it is increasing
the sales of the company by influencing and persuading their customers through an
excellent advertisement.
 Stimulate creativity and innovation: Marketing involves research activity which help
MacDonald's manager in determining the needs of consumers in market, by which they
create a new and creative product which satisfy the need of buyers and increases the sale
of company (Kotler and Armstrong, 2015).
 Growth of company: Marketing is important for the growth of the company, systematic
work division and delegation of authority help to take new activities and meet the
demand of customers.

TASK 2
Marketing mix of McDonald
Marketing mix is a model which McDonald uses to pursue its marketing objective in the
target market. It has 7 levels of marketing decisions i.e. product, price, place, promotion, people,
process and physical evidence.
BASIS MCDONALD KFC
Overview It is an American based fast
food company which was
founded in 1940 by Richard
and Maurice McDonald(Kotler
and Armstrong, 2015). and its
headquarter is in Chicago, US.
Punch line of the company is
'I'm lovin it'.
KFC stands for Kentucky
Fried Chicken, it is an
American based fast food
company which was founded
in 1930 by Harland Sanders.
Its headquarter is in Texas U.S
and its punchline is “finger
lickin'good”.
Product It is the physical item that
organisation produce for the
final sale to their customers. In
case of McDonald it is a seller
of food products like varieties
hamburgers, chicken products,
cheeseburgers, breakfast items
and beverages including
desserts. It also provide salads,
smoothies, fish wraps and
fruits. All these items are
organisation's product strategy
from their marketing mix.
Company is working
worldwide so it started making
It is a very popular fast food
company working all over the
world with its speciality of
burgers and fried chicken.
Their original product is fried
chicken nuggets with 11 secret
seasoning ingredients, other
speciality of KFC is home
style sides and butter milk
biscuits. In 1990, KFC
expanded its range of foods by
offering items like chicken
fillet burgers, wraps, salads,
potatoes fries, desserts and
beverages. They have their 300

item according to the
customer's taste and demands.
So in some countries they are
even producing stuff of beef
like beef burgers,big mac, Mc
spicy burgers etc.
different menus across
different locations in world
Price McDonald pricing policy is
excellent, they are offering
huge range of products with
meals and other products to
their consumers. For making
their customers to buy more
products, company is playing
with psychological pricing
strategy from the marketing
mix. They are making items of
all range to target all income
group of people. KFC,
Subway, Domino's and Pizza
hut are the primary
competitors of McDonald and
to compete with them it is also
following competitive pricing
strategy. Company has created
meals with different items in it
and different prices to target
people who buy in bulk.
KFC is offering affordable
prices for their products. They
are following inventive
strategy to compete in
different markets. This
organisation is targeting young
people in urban & semi urban
locations mainly who belongs
to the middle class or upper
middle class families. Ther
products are available as
individual and as bundles also.
In bundles pricing is less as
compare to the combined
prices of all individual
products.
Place McDonald is dealing
worldwide, it has its branches
in more that 110 countries and
KFC is a very famous brand
and is working all ove r the
world in more than 125

have around 36000 restaurants
all over the world. For
targeting different different
demands of their customers
they opened different type of
restaurant formats like Mc
drives which are located near
highways with takeaway
service only, McDonald next is
digital ordering is offered, Mc
cafe, Mc express and create
your own taste restaurant.
Most of the McDonald outlets
provide their customers drive
through services with indoor
and outdoor seating
countries with over 20500
outlets. There are some
countries where offers are
given as per special occasions
like Chinese new year etc.
organisation decides their
location based on many factors
like their customers, cost,
infrastructure, climate etc.
Promotion McDonald is spending large
amount on their advertisement
to regularly attract customers.
Company is making use of
newspapers,billboards and
sponsoring different events
like FIFA world cup, Olympic
games and many more.
Company is using aggressive
promotion strategy of
marketing mix. TV
advertisements is their major
source of promotions in which
they create very attractive TV
ads which persuade customers
KFC's promotional strategy is
excellent. They are taking
help of social networking sites
for advertising themselves like
twitter, YouTube, Facebook
etc. their advertisement also
appears in print media like
newspapers and magazines
displaying special offers &
prices. They have also used
different taglines for attracting
customers like 'So Good’,
‘Nobody does Chicken like
KFC' and 'Finger Lickin

in regularly buying their
products. McDonald is using
convincing punchline “I’m
loving it”. Not only this
organisation has hired famous
celebrities as their
spokespeople (Noori, 2015).
Good'.
People McDonald treat their
employees and customers very
well. Employees have a proper
& decent dress code as well as
company train their employees
to be customer friendly. They
follow a different method to
address their customers.
Utmost importance is given to
their consumers which gives
them satisfaction. They even
follow rating method every
month to encourage their
employees and take care of the
hygiene factor by providing
quality services.
KFC provide excellent
services to their customers by
providing them quality meals
at affordable prices. Through
their websites they are also
providing employment
opportunities in restaurant and
at KFC corporate.
Physical evidence It means creating an impact on
people's mind, which
McDonald has already done in
its marketing mix. Some of the
attributes of physical evidence
are hygiene, quality,
cleanliness etc. company's 'M'
KFC has already created its
physical image on consumer’s
mind by providing them 100%
whole muscle chicken. They
make transparency with their
customers. They even run an
operation name as KFC

logo, brand colour and happy
meal toys itself has created an
image on their customer's
mind.
foundation through which
their employees of KFC as
well as other students are
given assistance for education
and for other critical situations
Process McDonald keeps on changing
its cooking methods over the
years. They choose new
methods of packaging for their
food. Company use
sophisticated methods of
processing food items (Liu and
et. al., 2017). They are even
investing more on research so
that they can improve their
process.
KFC is offering drive through
services as indoor and outdoor
seating services. It also have
small outlets with limited
menu at stadiums, filling
stations, convenience stores
etc.
TASK 3
Marketing plan of McDonald
Company is planning to launch organic burger for health conscious people made up of all
organic ingredients in their menu so that they can attract more customers and can increase their
sale by launching something new to the people. For doing this McDonald need to make a good
marketing plan so that it can target their customers. Organisation has to plan a long term mission
and short term vision as well as analyse their internal & external environment and opt for a good
marketing strategy.
Marketing plan is analysing the situation, creating marketing strategies, sales forecast etc.
purpose of marketing plan is to create an objective and goal of the company. Next reason for
creating this plan is to make necessary budget & resources needed as per the objective. Another
reason of market planning is to create a market strategy which help the organisation to achieve
its goals.

Mission: McDonald mission is to create a place which is favourite to everyone for
drinking and eating. They want their clients to stay with them only.
Vision: Company's vision is to create a favourite food service destination which help
them to achieve growth and improvement.
SMART Objective of MacDonald
 They are planning to increase its sale by 20% in next one year by launching its new
product which is made by innovation and creativity. To be the largest and number one fast food company in coming 5 years and to beat its
competitors in every way.
SWOT analysis of McDonald
SWOT is strength, weakness, opportunities and threats. This is a tool used by
organisations for monstering their internal environment of business.
 Strength: McDonald is already a successful company and it is their strength that they are
offering products targeting all income groups. Other than this their balance sheet position
is strong with their overseas market.
 Weakness: Major weakness that company is facing their declining market share because
of the poor product development and bad quality & tastes of their food items. Company's
revenue and income is growing very slowly (Sinapuelas, Wang and Bohlmann, 2015).
 Opportunity: Growing dining out market is a great opportunity for the McDonald
because it will increase their customer base as well as their sales. Innovating with healthy
food items is also an opportnity for the company.
 Threats: Increasing competition is the major threat for the McDonald as it is breaking
the customers of this company by launching new and more innovative food items as
compare to McDonald.

Marketing Mix on McDonald's
Marketing P's plays huge role for any of the organisation because it tells that how
business can be expanded at bigger platform. In context of McDonald's, they will be benefited
while launching organic burger with the help of marketing mix.
Price: in this McDonald's can use psychological pricing strategy to sell their organic
burger in the market. Price should be less then their rivalries like KFC, Subway etc.
Product: The product which they are being in the market is organic burger which is
really health conscious for everyone. It will be helpful for heart patient if they will eat this
burger.
Place: The place in which they are trying to introduce their product is London because
people living in that part do focus on their health.
Promotion: McDonald's is required to do aggressive promotion and for that they can take
the help of social media, various sport were they can sponsor about the product. Television can
also be one of the alternates.
PEST analysis of McDonald
PEST stands for political,economical, social and technological analysis. This tool help
organisation to measure its competitiveness at macro level.
 Political: This factor is about how much government decisions affect the working of
McDonald. For example like company is facing pressure from government because of
high usage of sugar & sodium which is causing health diseases, so now McDonald is
offering healthy addition in their food choices (Wahab and et. al., 2016).
 Economical: In this factor economy of every country affect McDonald like in 2008
because of the economic recession McDonald took a financial hit and its sales get
reduced as well as some of their employees lost their jobs.
 Social: Consumer's increasing consciousness about health has impacted McDonald
because they are the producer of junk foods which is why people are not having very
good opinion about the brand.
 Technological: This factor has affected McDonald in a good way by making their
working more attractive. For example hanging flashy television screens above the
counters in its outlet has made it easier for their customers to choose what they want to
eat. Online order facility is also a good factor of the company.

Marketing strategy of McDonald:
 Segmentation: McDonald has divided their population on the basis of certain
characteristics. Like on the basis of region and density because customers in different
area have different demands based on location's trend. Next it has segmented on the basis
of age because not every age group is interested in healthy items. McDonald has
segmented their food items according to age groups like kids, adults and old age people.
 Targeting: Major target of McDonald with its new burger are people who wants to stay
healthy by eating organic or health items (Wu and Li, 2018). Through its research
McDonald has find out that people are actually avoiding to eat junk foods and shifting to
less oily and fat free items.
 Positioning: It refers to position their item in the market as compare to the other
competitors. McDonald positioning strategy is to make itself a family friendly healthy
fast food restaurant. They want to create such an image of their company that people only
think of McDonald when they want to eat healthy junk food.
Marketing Budget
Total amount allocated to the budget is 2,00, 000
Particulars Amount
Advertising on TV (10%) 20000
In social Media Platforms (25%) 50000
On newspapers (10%) 20000
Sales Promotion- (30%) 60000
Measuring the success of marketing activities:
Return on investment measures the sales revenue generated from marketing activities by
comparing the net investing amount in execution of marketing activities such as TV
advertisement, Newspapers etc. For example, McDonald's invest more in TV advertisement for
its new product thus identifying the increment in sales revenue while comparing with the amount
invested in adoption of TV ads. This is the best KPI to measure the effectiveness of all marketing
activities as it help in measuring the quality of leads these programs generate.

CONCLUSION
From the above report it has been concluded that marketing is an important part of the
organisation and it is interrelated with the every department. Other than this it has been learned
that there is proper marketing process which every company needs to follow with the help of
their marketing managers. They have their own role and responsibilities. Through the
comparison it has been find out that company need to focus more on their innovation part and
bringing something new in their products.

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