MKTG1001: Evaluating McDonald's Marketing Strategy and Management

This report provides an analysis of McDonald's marketing and management strategies, focusing on the barbeque bacon lovers product. It identifies and explains core marketing concepts such as target market segmentation (geographic, demographic, behavioral, and psychographic), customer profiling (age group 8-45, bachelors, newly married couples, office goers, and students), and understanding customer needs, wants, and demands. The report evaluates McDonald's market offerings, emphasizing value for money and customer satisfaction through quality and respect for customer feedback. It also explores McDonald's partnerships, such as those with Disney and Capgemini, and examines the marketing mix elements (product, price, place, promotion, people, process, and physical evidence) in relation to the barbeque bacon lovers, assessing its pricing strategy, promotional activities, and potential improvements. The report concludes by highlighting the importance of adapting to customer preferences and maintaining quality to ensure continued success.

Running head: MARKETING AND MANAGEMENT
Report on marketing and management of McDonalds
Name of the student:
Name of the university:
Author note:

1
MARKETING AND MANAGEMENT
Executive summary
Marketing and management are interrelated with each other. Managing the executed
marketing activities helps the personnel in making estimates regarding the stability in the
market position. Conducting meetings and conferences with the board panel is effective in
terms of assessing whether the undertaken steps are flexible for penetrating into the threshold
of the foreign markets. All these aspects seem true for organizations like McDonalds. Market
research helps the personnel to gain an insight into the needs, demands and requirements of
the customers. This research helps in preparing innovative products for the achievement of
large scale customer satisfaction. Execution of marketing mix through the preservation of the
core values adds creativity into the products and services.

2
MARKETING AND MANAGEMENT

3
MARKETING AND MANAGEMENT
Table of contents
1.0 Introduction..............................................................................................................4
2.0 The core marketing concepts....................................................................................4
2.1 Target market.......................................................................................................4
2.2 Customer profile...................................................................................................5
2.3 Needs, wants and demands...................................................................................5
2.3 Market offerings...................................................................................................6
2.4 Value and satisfaction..........................................................................................6
2.6 Exchange, transactions and relationships.............................................................7
3.0 Marketing mix..........................................................................................................8
3.1 Product.................................................................................................................8
3.2 Price......................................................................................................................9
3.3 Place.....................................................................................................................9
3.4 Promotion.............................................................................................................9
3.5 People.................................................................................................................10
3.6 Process................................................................................................................11
3.7 Physical evidence...............................................................................................11
Conclusion....................................................................................................................11
References and bibliography........................................................................................13

4
MARKETING AND MANAGEMENT
1.0 Introduction
Management is important in terms of ensuring the smooth functioning of the business
activities. The behavior of the managers is crucial in terms of tracking the effectiveness,
appropriateness and feasibility of the undertaken steps. Management includes the conscious
approach towards all of the business issues including the effective use of the organizational
resources by the employees (Armstrong et al., 2015). This report attempts to peek into the
management techniques adopted by McDonalds in terms of attracting the customers. The
product taken into consideration is barbeque bacon lovers. In this, the core marketing
concepts like the target segment and marketing mix would be applied. This would be
enriched with the application of marketing theories.
2.0 The core marketing concepts
2.1 Target market
Market segmentation helps the personnel to increase the sales revenue and profit
margin. There are certain criterias, which help the personnel in segmenting their market.
Along with this, market segmentation acts as a cornerstone in terms of expanding the scope
and arena of business. All these aspects also seem true for McDonalds (Mcdonalds.com.au,
2018). They segment their market based on the specific tastes and preferences of the
customers. Delving deep into the business of McDonalds, the market segmentation are of
the following types: geographic, demographic, behavioral and psychographic.
Geographic segmentation is done based on the close proximity of the customers.
Along with this, the density of population is taken into consideration for segmenting the
market.

5
MARKETING AND MANAGEMENT
Demographic market segmentation involves the age of the customers and the
lifestyles led by them. Along with this, the income and the occupation of the customers is
important in terms of manufacturing customer centric products.
Behavioral segmentation includes the response of the customers towards the levied
products. Typical components of this are degree of loyalty, personality and status (Menon et
al., 2015). Psychographic segmentation consists of the social class and lifestyle of the
customers.
McDonalds applies the demographic market segmentation. This is in terms of
manufacturing the products according to the needs, demands and requirements of the
customers. These offers cater to the appetite needs of all the customers.
2.2 Customer profile
The customers of McDonalds belong to the age group of 8-45. They are very
passionate towards the products. This includes both the males and females. The children are
also included in this age group. Narrowing down the search, the bachelors tend to spend
quality time in the McDonald outlets. This is because they do not have any responsibilities to
fulfill in the families. The newly married couples also visit the outlets of McDonalds to
spending quality time with each other before engaging into the familial responsibilities
(Mcdonalds.com., 2018). Most of the customers of McDonalds are office goers and students.
This is the best place for them to hang out with friends. Catering to all of these customers
helps the personnel to identify the prospective source for increasing the sales revenue and
profit margin.
2.3 Needs, wants and demands
The age group of 8-45 goes through intense pressure and hard work. Therefore, they
need high calorie foods, which are enriched in protein. As they experience drab monotony,

6
MARKETING AND MANAGEMENT
they hardly get time for preparing healthy foods after returning from the workplace. This
reflects their demands for readymade foods. As they are working, they seek such foods,
which are within their budgets. However, sometimes they demand high priced food items.
This reflects their spending capacity, enabling the personnel to assess the effectiveness,
appropriateness and feasibility of the identified targets (McDONALD, 2016). Apart from
this, some of the customers demand oil free food items, as they are very much conscious
towards their health.
2.3 Market offerings
McDonalds has achieved accolades and glory by catering to the appetite needs of the
customers. The major drive behind this is quality and customer satisfaction. The organization
has enough in store for all of the customers. The outlets of McDonalds in the neighboring
countries report of the large-scale customer satisfaction. This is due to the introduction of
fusion foods at cheap rates. Usage of social media acts assistance for McDonalds personnel in
terms of informing the customers regarding the newly launched products. Bearing in mind the
specific tastes and preferences of the customers, Mcdonalds introduces combo offers like
Combos, Zunger Boxes and Happy Meals (Mcdonalds.com.au, 2018). These offers add
smiles into the faces of the customers especially the children. Mention can be made of the
Burger business, which is also known as the Blitz Box. This was introduced to incorporate
Kansas Chef Design into the initial stages of the NFL season. With a cheap rate of 15 dollars,
the box consists of 2 quarter pounders with cheese, two medium fries and 20 pieces of
chicken nuggets. These servings prove flexible in satisfying the hunger of the customers
(Mcdonalds.com.au, 2018).
2.4 Value and satisfaction
McDonalds believes in providing value for money. This is through the means of
ensuring that the quality is maintained within the food items. The attribute of quality satisfies

7
MARKETING AND MANAGEMENT
the needs, demands and requirements of the customers. On the other hand, the viewpoints of
the customers are valued and respected. Herein lays the appropriateness of the feedbacks
provided by them in terms of upgrading the standards and quality of the products and
services.
Values can also be related to the organizational values of honesty, integrity among
others for the achievement of customer satisfaction. The personnel expose a conscious
approach towards the preservation of these values in terms of bringing innovation and
creativity within the products and services (Tzempelikos & Gounaris, 2015). Complying with
the values provides the foreign investors a chance for expanding their business through
prospective investments in organizations like McDonalds. This thought results in
enhancement of the stability in the relationship between the personnel and the clients. The
immediate outcome of this partnership is lucrative schemes, offers and discounts, which is
one of an effective means for the achievement of large-scale customer satisfaction.
Satisfaction of the clients and the customers adds value to the business activities of
McDonalds (Mcdonalds.com.au, 2018).
2.6 Exchange, transactions and relationships
In order to expand the scope and arena of business, the companies and organizations
need to indulge in partnership with the associate partners. This is also true for McDonalds,
which engages in partnership with brands like Asian American Justice Centre, national
Urban League, Organization of Chinese Americans among others. This partnership results
in the excavation of lucrative offers, which can lure the customers towards the brand. These
partnerships also assist in finding prospective sponsors, which can help McDonalds in the
achievement of growth and development (Mcdonalds.com.au, 2018).

8
MARKETING AND MANAGEMENT
One of the recent examples of innovation within McDonalds is the partnership with
Disney. This is in terms of gaining profit through the means of doing something for adding
happiness into the faces of children. As a matter of specification, this partnership merges the
Happy Meal with the animation characters from the movies of Walt Disney. This was a part
of the plan, where $1 billion was given to Disney. Capgemini is one of the other partners,
which McDonalds patched up for upgrading the speed of the technologies. 100 employees
from McDonalds switched into Capgemini (Mcdonalds.com.au, 2018). The details of the
agreement was not disclosed to the other associate brands, as it was a multiyear agreement.
According to the statements of the CEO, moving with the competitive pace is vital.
Therefore, they have taken this step The focus was on getting the staffs acquainted with the
new systems, so that the productivity can be enhanced.
3.0 Marketing mix
3.1 Product
Barbeque bacon lovers is saucy, juicy and enriched with crispy bacon. The beef used
in the item is 100% certified. It is high in energy, which is perfect for the office goers as well
as the students. Along with this, it also possesses high protein, which would prove beneficial
for the persons suffering from weakness. Presence of high saturated fat might compel the
health conscious people to avoid such items (Mcdonalds.com.au, 2018). The breads used for
making the burgers is high in carbohydrate, which is one of the other reasons for low sales
revenue of the product. The item has both vegetables and non-veg ingredients, which might
make the customers concerned about the purity and freshness. However, the workers
preparing the item need to adhere to the safety and hygiene measures while preparing the
items. The veg and non-veg items need to be prepared through separate procedures.

9
MARKETING AND MANAGEMENT
3.2 Price
The price of barbecue bacon lovers is $8.30. This includes the income and lifestyle of
the customers. It might be difficult for the middle class customers to afford such items.
Therefore, the personnel need to experiment with the price in order to assess its effectiveness,
appropriateness and feasibility. Delivering the customers with such products would make the
personnel aware of the customer approaches towards the levied bacon (Mcdonalds.com.au,
2018). The members of the trade union can be consulted for averting the instances of
fluctuation, high exchanges rates and inflation. Along with this, the partnership proves
beneficial in setting the prices according to the purchasing power of the customers.
Countering this, fluctuation in the prices of the raw materials would act as an obstacle in
setting the prices of the products. The personnel need to review the financial condition before
planning to launch such products in the market.
3.3 Place
Products like barbecue bacon lovers can be brought before the customers through the
means of street advertisements. If the advertisements are conducted in the close proximity to
the customers, they would be interested to try the product. McDonalds can set up their outlets
near the banks, parks and schools. This would be effective in terms of adding to the stock of
customers (Luca, Hibbert & McDonald, 2016). Conducting door to door marketing for selling
the leaflets would help the personnel in gaining an insight into the attitude of the customers.
This assessment would be crucial in terms of estimating the future prospects of such
products.
3.4 Promotion
Promotion is one of an efficient means for achieving growth and development. This is
true for all of the companies and organizations including McDonalds. Tie ups with the
publishing companies would result in the supply of leaflets consisting of the details of

10
MARKETING AND MANAGEMENT
Barbecue bacon lovers. Distributing these leaflets along with the newspaper would inform the
customers about the latest offers, which the company is giving on the purchases (Baker,
2014). Social media is a modern means for promoting the services. Uploading the images of
the barbecue bacon lovers on the websites and social networking sites would increase the
trafficking of the audience to the brand. Giving certain discounts on online orders would
enable the customers to get high support from the customers, who are tech savvy. Apart from
this, providing access to the customers to make the payments through Paytm would enhance
the financial parameter.
Sponsoring in the corporate, sports and other events would expand the scope and
arena of McDonalds business. For this, the organization needs to maintain stable relationships
with the associate partners. Merging bacon burgers into a complete meal and serving this as a
complementary meal in the movies and sports would an innovative means for attracting the
customers (Jaworski, 2018). Along with this, keeping options instead of bacon would help the
customers who do prefer chicken. This would reflect the conscious approach of the personnel
towards the specific tastes and preferences of the customers.
3.5 People
Skilled and efficient personnel are employed for handling the business of McDonalds.
The research and development team is flexible enough in preparing the items according to the
needs, demands and requirements of the customers. The employees are trained in terms of
making effective use of the machines for preparing the items. They are given special training
in terms of safety, hygiene measures. This is vital in terms of catering to the health needs of
the customers (Goworek & McGoldrick, 2015).

11
MARKETING AND MANAGEMENT
3.6 Process
The vegetables and the non-veg items are brought fresh from the farms and poultry.
After this, they are thoroughly washed for removing the bacterias. As a sequential step, the
ingredients are mixed with the vegetables and the non-veg items. They are processed in the
machines, which are regularly cleaned after finishing the production process. There are
separate kitchens for preparing the veg and non-veg dishes. The production process is
monitored by the line managers (Sheth & Sisodia, 2015). The defective items are kept aside
instead of throwing. This reflects the conscious approach of the personnel towards the quality
of the products. Along with this, it is also an indication of solid waste management technique
for reducing the pollution and waste levels.
3.7 Physical evidence
The customer feedbacks are evidence in terms of the growth and development, which
McDonalds is achieving. Satisfaction of the customers is the means towards increasing the
sales revenue and the profit margin. The reviews provided by the customers on the websites
reflect their interest towards helping the organization in upgrading the standards and quality
of their products and services (Lusch & Vargo, 2014). Adopting effective communication
channels is the evidence towards enhancing the stability in the relationship with the clients.
This stability is the keystone towards penetrating into the international markets.
Conclusion
This assignment proves successful in providing an insight into the marketing and
management techniques adopted by companies and organizations like McDonalds. The
aspect of market segmentation improves the focus of the personnel in terms of executing the
marketing activities in an efficient and effective manner. Conducting market research through
the means of marketing mix makes the personnel aware of the appropriateness of launching