Marketing Concepts and Internal Relations: McDonald's Analysis Report

This report provides a comprehensive analysis of McDonald's marketing strategies and internal relations. It begins with an introduction to marketing concepts and the company's background, including its founding and product offerings. The report then delves into a situational analysis of McDonald's, examining internal and external environmental factors. It explores the company's marketing mix, comparing it to Burger King, and analyzes the 7 Ps of marketing (product, price, promotion, place, physical evidence, people, and process). The report also presents a detailed marketing plan for McDonald's, including its vision, mission, marketing intentions, and the STP model (segmentation, targeting, and positioning). A SWOT analysis is conducted to evaluate the company's strengths, weaknesses, opportunities, and threats. The report also discusses market analysis, market segmentation, and distribution strategies. The report highlights the responsibilities and roles of the marketing function and concludes with a summary of the key findings and recommendations. It emphasizes the importance of understanding customer needs and adapting marketing strategies to maintain a competitive edge in the fast-food industry.

Marketing Concepts and Internal Relations Assignment
Marketing Strategy and Application
Unit 2
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Table of Content
INTRODUCTION:..........................................................................................................................3
Task 1...............................................................................................................................................4
TASK 2............................................................................................................................................7
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION:
Marketing is the procedure of receiving people who are implicated in a company`s
products and services. Moreover, it includes researching, promoting, selling as well as
distributing product or services. In simple terms, marketing mentions to activities of business
related to buying and selling product or services. This description is based on McDonald's which
is an American Fast Food company founded in 1940. Its founder was Richard McDonald and
Maurice McDonald as well as its headquarters is located at Chicago, Illinois, United State.
Products offered by them are French fries, coffee, soft drinks, breakfast, desserts and many more
at a worldwide level. Respective reports will be going to discuss marketing mix of company as
well as design their marketing plan.
This arrangement will discuss the concept of marketing along with current and future
trends as well as also includes different marketing processes. In addition to this responsibilities
and role of marketing function, will going to be elaborating along with value and reputation of
marketing role.
Situational analysis– McDonald`s is a popular company which every time applies unique
approaches within their work. They are working within both internal and external environmental
factors which impact the quality of work in the company in direct and indirect manners. Thus, it
is necessary to analyse the impact in positive and negative manners for upcoming procedures.
Marketing strategy– After analysing situation McDonald's have to work on planning practices.
Marketing strategies are based on impactful strategies of companies which they have to conduct
for maximisation of sale and profitability. Within this process marketing division staff contribute
effectively for identifying customer requirement so that the firm will satisfy their customers.
Marketing decision– Now its time to make decision within this manager play important role
whose by analysing business and market demand for further improvements. In relation to
respective company marketing, managers will analyse desires and requirements of customers for
producing quality services for them. These decision will assist in building positive relationships
within service users and providers.
Implementation and control – In last step company implements changes in their production
process as per the demand of customers which was analysed in advance by marketing managers.
So that, McDonald's will able to fulfil their customer demand in an effective manner.
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Market analysis – This is a major role and responsibility performed by the marketing
departments of an organisation. Within this procedure, staff within the marketing department
work together to collect information and data from several sources which are based on
competition and current trends. After analysing market, the manager of McDonald's will take
impactful decisions for their firm by implementing business advantages.
Market segmentation – It is role of marketing department within that manager of McDonald's
classify their market within different segment according to customers age, choice, taste,
preferences, beliefs, culture and many more. Thus, after determining these they will serve
customers within required manner.
Distribution – market research plays an important role in distribution as they identify customers
needs and want in an effective manner. Then distribute the products and services as per their
requirement. Thus, it will result in satisfying them within an effective manner.
Task 1.
Marketing mix is the concept which an organisation utilises for identifying their value of
business within market area. It includes the 7 Ps of marketing mix i.e, (price, product, promotion,
place, physical evidence, people and process). Comparison within two same sector organisations
are as follows:
Starting
Point
McDonald`s Burger King
Product
McDonald`s is a popular
organisation in the fast food
industry as well as by them
primarily breakfast, burger,
chicken, fries, snacks, desserts,
sandwiches and many more are
selling. Along with this they offer a
variety of options to their
customers such as Egg McMuffin,
Egg White Delight McMuffin,
Products offered by Burger King are
burgers, beverages, milkshake as the
main products. It includes both veg and
non-veg products within their menu.
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Hotcakes and so on.
Price
McDonalds is using several pricing
techniques for selling their
products. These are some popular
pricing techniques Cost valuing,
going away rate, cost plus pricing,
price discrimination and loss
leader. Overall, the aim of the
respective company is to offer food
at a competitive value driven price
for customers. Along with this,
within different restaurants of
McDonald’s price slightly vary as
per digit of factors. While prices
are set through a complex demand-
based methodology.
Respective fast food organisation is
following pricing strategy i.e., market-
oriented pricing strategy and bundles
pricing also (Bhalerao and Kamble,
2015). As they have prices comparable
to market behaviour as well as demand.
Respective company have main
competition with McDonald's. So, for
gaining competitive advantages, Burger
King is concentrating on offering better
quality as well as taste with affordance
price. For gaining a competitive edge,
respective fast food company offering
value-added meals as well as beverages
for generating revenue within this
Burger King holds stand position at
global level.
Place
Respective restaurant implements
different distribution strategy
within their working as per
particular nation requirement. As
they are offering home delivery
services within few nations
whereas, in some countries this
service is not available (Blythe and
Martin, 2019). Along with this,
Few of McDonald`s restaurants are
open 24 hours a day. Thus, it is
best illustration of intensive
distribution that simply means that
Burger King have its strong supply
chain network at global level. The head
office is located at Florida in the United
State and their operations are distributed
region wise. As the suppliers of burgers,
drinks and dessert course are decided
the standards as well as quality of
Burger Kings quality control dept.
Burger King has highest no. of
restaurants in the US. Geographically,
their elevated presence is in western
countries. Burger King has developed
their physical stores, website ordering as
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making availability of goods for
sale by all possible distribution
channels.
well as mobile application to increase
the customers reach for getting orders
and growing revenues.
Promotion
McDonalds is using several types
of techniques for promoting their
products within market area. For
instance, TV notices, newspaper,
internet as well as other media
outlets. Along with this there are
some other techniques also which
companies use for their sales
promotion. For instance,
purchasing of six cup tea/coffee get
six stickers and have one cup free.
They also offer some discount
coupons and freebies.
There are several ways implemented by
Burger King for their promotional
strategies such as print media like
newspaper, magazines and hoardings.
Respective organisation also organises or
sponsors several events to reach their
clients (Blythe, 2012). Offering more
value-added menu for the main course
during the time of ordering is also one of
the policies of Burger King.
Process
It is related to set of actions which
are performed in order to achieve
something. McDonald`s has
undertaken numerous activities
within their operations for serving
customers in an effective manner.
For instance, within overall process
food activity is important as in
respective restaurant food
preparation procedure is transparent
which simply means that the entire
process is visible to customers
(Essayyad, 2015). Other parts of the
process include but not limited to
Burger is operating in more than 71
countries and maintained their taste,
customer satisfaction, work culture,
trade chain and new product launches in
harmony of respective nation one
because of process flow which was
maintained by Burger King. Processes
made such huge food chain to operate
more reliably in any environment.
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how consumers place their orders,
how long they wait for their food,
and how they are treated by the
client care supporters.
People
McDonalds deal with their clients
and workers is one of kind as
within their outlets approx. 97000
staff members are working and for
their training session company has
invested huge amount which shows
that they believe in development of
people who are working with them.
Whereas, Burger King administration
emphasises on both their staff members
as well as its customers. Thus, for
performance enhancement Burger King
management department conduct
appraisal program.
Physical
evidence
Respective fast food company have
their good physical proof that help
them in changing their psyche of
purchaser (Fırat, 2013). McDonalds
is type of family restaurant which
have one portion for children's also
as they provide cheerful toys to
draw them. Along with this,
birthday parties can also organised
for children's in portion which is
separated for children's.
Burger King is working in 71 distinct
nations, their outlets are built up in
15000 areas. It is considered as immense
open door for Burger King as pattern of
low-priced food persistently expanding
in creating nations like India.
TASK 2
Marketing plan is a crucial strategy of an organisation which help in creating framework
for new offering of a business organisation. Through a marketing plan, companies can build long
term relation with customers also as generate high revenue in an easy manner. In simple words,
the marketing plan is considered a blueprint which is utilised for determining marketing and
advertising approaches of organisation for upcoming practices (Griffin, Noble and Durmusoglu,
2014). Below mention is marketing plan of McDonald's explanation of this are as follows:
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Introduction to company: McDonalds is American Fast Food Company which was
created in 1940 by brothers Richard and Maurice McDonald. It is well recognized for their
delicious hamburgers, special cheeseburgers and French fries along with this, they also include
special chicken products, breakfast elements, soft drink, wraps, desserts and many more.
Company is serving their excellence services in more than 110 nations which have around 37000
outlets.
Vision– To grow into progressive organisation in the world of fast food.
Mission– To become the most well-known platform for every age group of people for
food and beverages.
Marketing Intentions of McDonald’s
To offer varieties in burgers, with some healthy supplements for increasing the great
number of customers to around 20%. To enhance sales by 10% in 1 year.
STP model – This model consists of three steps which assist in analysing companies offering
and the way of communicating its benefits and value to a particular group. STP stands for
Segment, Target and Position explanation of these in relation of McDonalds are as follows:
Segment– Market division is the procedure of splitting up mass market within different group of
similar needs and wants. The motive behind conducting segmentation is to know more detailed
manner, gain competitive advantages and able to serve customers in better manner (Walters, and
Helman, 2020). Respective organisation uses different type of segmentation for breaking large
markets within a small customer group. Thus, in geographic and demographic segmentation,
they had divided their customers.
Target – McDonald’s is part of fast food industry which is full will good surroundings.
Along with this, they are targeting children with happy meals as well as youngsters
through offering free WIFI (Joshi, 2012). In addition to this, respective fast food
organisation is offering breakfast along with several other options. Moreover, they started
serving in Australia as well as New Zealand to serve those people who love to have fast
food anytime as well as also breakfast.
Position - McDonald’s is fighting for positioning their brand in the competitive business
industry against their competitors. In addition to this, there are several competitors of
respective organisation within fast food industry like KFC, WENDY’S, BURGER KING
and many more. Furthermore, McDonald’s has utilise several tools for their promotion
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and publicity purpose such as social media as well as billboards as their mainstream to
position its brand against its rivals. The pricing strategy has been a strategically device
for McDonald’s to position its brand and in its products in the consumer mind.
SWOT analysis – It is a framework which assist in internal as well as external factors analysis.
Because strength and weakness are considered as internal factors where, circumstance and
threats are as external factors. Implementation of SWOT analysis in relation of McDonalds are
as follows :-
Strength Weaknesses
 McDonald`s have its strong brand name
as well as goodwill within market area.
 Along with this, respective organisation
gets engaged with large number of
customers at global level (Miller Jr,
2020).
 McDonald's utilise successive
approaches for gaining business
growth.
 McDonalds is quick service restaurant
Chain in United State in 2018 by
system wide sales.
 McDonald's mainly deals with fast food
facilities which is not healthy food, for
the average person. It may result in
decreasing sales because people are
getting more health conscious.
 Along with this, the respective
company faces high turnover because
of less additional opportunities
(Pattnaik, and Shukla, 2020).
 Because of current employees’ right
revolutions at global level and
increased wage limits, many
organisations faced critical
dissatisfaction from staff. In the same
manner, recently McDonalds faced
extreme backlash from their workforce.
Opportunity Threats
 The Company is mainly dealing at
global level which can provide
opportunities to them in gaining higher
success (Kostelijk, and Alsem, 2020).
 Moreover, McDonald's alter their value
 For McDonald's one of the major threat
is regulations which given by
government by targeting fast food
organisations.
 Along with this, respective organisation
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statements by promoting particular
people for visiting their stores.
 By respective organisation initiates has
been taken for partnership with Uber
Eats and Door dash for US food
delivery. These mobile order and
delivery initiatives assist McDonalds in
reaching and fulfilling customers ever
changing needs.
is facing threat through high level of
competition from same sector
organisations such as Burger King
(Kotabe, and Helsen, 2020).
 Enhancement within commodity price
may result in increasing cost while a
weak economy limits the ability to pass
the price hikes through to consumers.
Marketing Mix- It is a framework which utilise by an organisation analysing their existing value
within organisation (Lipsman and et. al., 2012). Marketing mix involve 7P’s explanation of these
to McDonald are as follows; -
Product– McDonald’s is a popular organisation of fast food industry as well as by them
mainly breakfast, burger, fries, chicken, sandwiches, snacks, desserts and many more are
selling. Along with this they offer a variety of options to their customers such as Egg
McMuffin, Hotcakes, Egg White Delight McMuffin, Hash Browns, Quarter Pounder with
Cheese, Hamburger, Cheeseburger, Double Quarter Pounder with Cheese, Double
Cheeseburger, Vanilla Shake & Cone, Kiddie Cone, Hot Caramel Sundae, Strawberry
Sundae, Baked Apple Pie, Hot Fudge Sundae, McCafé Chocolate Shake, McCafé, and
many more products are serving by McDonald’s to their customers at worldwide level.
Price– McDonalds is using several pricing techniques for selling their products. These
are some popular pricing techniques value pricing, going rate, cost plus pricing, price
discrimination and loss leader (Ragas and Culp, 2014). The overall aim of the respective
company is to offer food at a competitive value driven price for customers. Along with
this, within different restaurants of McDonald’s price slightly vary as per number of
factors. While price is set by the through demand-based methodology
Place– Respective restaurant implement different distribution strategies within their work
as per nation requirement. As they are offering home delivery services within few nations
whereas, in some countries this service is not available. Along with this, few of
McDonald’s offering 24 hour services which simply means that their restaurant remain
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open every time. Such practices is best example of intensive distribution which means
that availability of products for sale through every possible distribution channels.
Promotion – In promotional tactics of an business firm advertisements is most notable
tool. There are several techniques which are used by McDonalds for promotion and
communicate with customers such as television, magazines, newspaper, internet as well
as other media outlets (Ragas and Culp, 2017). Along with this there are some other
techniques also which the company uses for its sales promotion. For instance, on
purchasing of six cup tea/coffee get six stickers and have one cup free. They also offer
some discount coupons and freebies.
Process– In the process element of marketing mix several activities performed for
accomplishing something within effective manner. For serving customers in effectual
manner there are various activities which has been undertaken by McDonalds within their
working (Asekome, 2020). For example, in entire operation of respective organisation
food preparation is important as they maintain complete transparency within entire
procedure that means it is visible to customers when they prepare food. In addition to
this, another aspect of process involves the way by which customers order as well as for
how much they wait for ordering food as well as how they are treated through customer
care assistance.
People – UK and Ireland McDonald's have approx. 97,000 staff members. Out of this UK
70% McDonald's restaurant are owned as well as operate by local businessmen or women
of that particular area. In a year, the respective fast food chain restaurant invests
approximatively £40million in providing training as well as development sessions to their
staff members. In marketing mix, the main objective of discussion within people aspect
is to address issue which are related to both customers as well as staff. In the situation
when personnel are not satisfied or happy, they will not be going to deliver better
customer services. It may result in frustrating customers and they will never come back to
store again. Thus, for a business firm it is essential to devise suitable strategy for
fulfilling customers and staff both requirements.
Physical evidence– It is last aspect of marketing mix and it related to the physical
evidence of an business firm within market area (Soe, Moritaka and Fukuda, 2015).
Organisation physical evidence will affect not only the impression of buyers but also the
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functioning of McDonald's. Respective restaurant physical evidence is good as they have
attractive interior as well as maintain hygiene.
Marketing budget:
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 7000 10000 12000 10000 10000
Investment 3000 18000 25000 35000 18000
Total 10000 28000 37000 45000 28000
Marketing
outlay
Promotion 12000 4000 9000 10000 4000
Sales publicity 4000 4000 4000 4000 4000
Direct selling 4000 15000 5000 4000 4000
Total 20000 23000 18000 18000 16000
CONCLUSION
As per the entire discussion it has been concluded that marketing is an important process
within an organisation as it helps in attracting customers. Along with this, it helps in gathering
information as well as data which provides assistance to company in serving their customers as
per requirement. Moreover, their gathered information and data play an essential role within
decision making. Apart from this, the company must design proper market plans in their work
for satisfying customers and effective utilisation of available resources.
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