Strategic Marketing Plan for McDonald's: Comprehensive Analysis

This report presents a strategic marketing plan for McDonald's, the leading global food service company. It begins with an introduction and brief history, followed by an internal analysis that examines financial performance, mission statement, and product portfolio. A SWOT analysis is provided to assess strengths, weaknesses, opportunities, and threats. The external environment is then analyzed using the PESTEL framework, considering political, economic, social, technological, legal, and ecological factors. Market and competitor analyses are also included, with a focus on Burger King as a key competitor. The report aims to provide a comprehensive overview of McDonald's marketing strategies and market position, drawing on various sources and providing a solid foundation for further strategic planning.

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Table of Contents
Introduction…………………………………………………………………....................4
McDonalds History………………………………………………………………………4
Internal analysis………………………………………………………………………….5
SWOT……………………………………………………………………………………6
External analysis…………………………………………………………………………8
References………………………………………………………………………………12

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Introduction
McDonald's is the leading world food service shop. The company aims to form a strong brand
and win more customers worldwide. This report provides a marketing strategic plan for the
company to implement. This plan is placed on the company’s structure, internal environment,
and external environment screening. The report outlines the marketing plan basing on the
company’s capabilities and strong business reputation worldwide.

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McDonalds History
McDonald's Headquarters is situated in Oak Brook (Mcdonalds.com, 2018). The organization is
the primary overall foodservice shop. McDonald's has in excess of 34,000 local bistros taking
care of around sixty-nine million buyers in roughly 118 countries consistently around the world.
McDonald's is enlisted in the NYSE (New York Stock Exchange) advertise (Mcdonalds.com,
2018). The organization works under the café business. Its amusing history was started by Ray
Kroc, the organization's originator. The way that the association has a concentrated
administration makes it simple for the organization to apply its control over the various
fragments they fill in just as their objective market. A divisional association graph will work best
for McDonald's. It is on the grounds that the organization has activities in various nations, a
reality that makes concentrated administration very troublesome. A divisional hierarchical
structure will make it workable for authority to be assigned to every locale in which McDonald's
works. Under the divisional hierarchical graph, the structure of the association is stamped
dependent on the particular factors that impact request and supply in the various areas. These
components incorporate client inclinations, rivalry just as social and religious practices. Every
division will have its administration which will make it workable for the division to concentrate
on its principle vital targets.

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Internal Analysis
1. Financial Performance
McDonald’s performance over recent years has been great. This is evident in the financial
returns the company has posted in its annual reports in recent years. The ever-increasing returns
indicate a robust management and marketing strategy the company has. The company’s customer
service performance objective has been to provide quality service in the least time possible.
McDonald's recognizes the importance of customer service as its key driver to growth. The
company has also ensured uniformity in customer experience in all its store such that customer’s
concerns are handled efficiently and in a timely manner (Kaplan, 2009).
2. Mission Statement
McDonald's corporate mission is “to be our customers’ favorite place and way to eat and drink.”
The company’s operations are aligned on this mission statement. It clearly indicates the
significance of customers as the key growth driver.
3. Product Portfolio
McDonald's has a differentiated portfolio whose breadth of thing and regard expert remain
significant all around, and that creates a normally disregarded net unit advancement of 3%.
Considering my upside to accord EPS checks, a low relative extraordinary, MCD's legitimate
constancy of results, and a benefit yield of ~3%, I see the risk-adjusted return as great and would
endorse obtaining the offers. When putting the benefits yield in setting, it must be communicated

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that it is higher than the market with ~1.4% being the standard for associations under
consideration and ~2% for the S&P 500.
Regardless, I expect compelled various improvement for the rest of 2018 reliant on continued
with diner level edge weight and advancing FX headwinds. Regardless, uneven SSS examples
will bolster the stock proceeding.
SWOT
Strengths Weaknesses
 Economies of scale-McDonald's can
share its costs over its restaurants thus
making their cost of food cheap.
 Wide audience reaches- The Company
has a wide market share. This allows
the company to conveniently
introduce new services to its
consumers than its competitors.
 Huge gains from implementing best
practices- The Company can reap big
by implementing best practices that
aim at promoting best managerial and
service delivery practices.
 Market power over suppliers and
 Declining market share.
 The company experiences weak
product development.
 Unappealing quality and taste of
products that may affect their taste and
preferences.
 Slowed revenue and income growth.
 The company suffers from disgruntled
franchisees.

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competitors- McDonald's can exercise
its market power over competitors by
underpricing their products in their
restaurants.
Opportunities Threats
 Strengthens its value proposition and
offering, to encourage customers who
visit coffee shops into McDonald's.
 Continued focus on corporate social
responsibility, reducing the impact on
the environment and community
linkages.
 Expansion in international markets
such as Asian markets widens the
company’s market share.
 Rebranding such as offering additional
services such as internet Wi-Fi and
children playback help attract more
customers.
 Competition is intense
 Consumers have become more health-
conscious with regards to what they
consume.
 Fluctuations in the foreign exchange
rates destabilize the economy.
 Recession periods may greatly affect
the earnings of the company.
 The ever-changing demographics.

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External Analysis
1) PESTEL
Outer condition fundamentally alludes to components, occasions, and impacts coming and
happening from outside the associations premises (Cao, 2017). The organization regularly does
not have much command over these variables but rather they influence essentially the business
task of the organization. Among these variables incorporate, legitimate and administrative,
worldwide occasions, monetary conditions, mechanical progression, development, social and
ecological occasions, and rivalry.
Political Economic
A portion of the political viewpoints
pervasive in worldwide nations could be
resembled an open door by McDonald's while
some as a risk. For instance, the expanding
worldwide exchange understandings are
absolutely an aid for the organization and give
it a chance to upgrade its worldwide
production network component.
As a global company, it is susceptible to the
economic conditions of the countries it
operates in. For example, the gradual but
stable growth of the U.S economy has
definitely benefitted the company largely but
the slowdown of economies such as China
and Europe in recent times has affected its
growth.
Social Technological
There are certain aspects that pose
opportunities and others that pose a threat to
With the huge internet penetration and royal
expansion and acceptance of e-businesses,

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the company. For example, the improving
economy and thus the improved spending
power and widening wealth gap is good news
for the company. McDonald’s target
customers are people from median household
incomes. With improving purchase power, it
can be viewed as an opportunity.
McDonald’s should look into e-commerce as
a standalone channel just as Domino’s and
Subways. Presently it does cater to this
market but through Zomato, and Foodpanda.
Legal Ecological
At the U.S there is a norm for higher
minimum wages now and similarly, this
policy is being revised in other nations also
and thus this surely affects McDonald’s
negatively. Also, there are health regulations
being made especially for the children and
thus could impact its presence in schools and
colleges. The UK, for example, has
discouraged advertisement of junk foods for
children.
There is an ever-increasing pressure on
abiding by different environmental
regulations in different countries. These
regulations do affect McDonald’s supply
chain as most of the climate regulations
impose restrictions on certain operations that
may seem to increase carbon footprints and
negatively affect farms.
2) Market Analysis

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As indicated by Jim Muehlhausen, McDonald's had involved 19% of the absolute piece of the
overall industry in the cheap food industry. While its nearest rivals: Burger King and Wendy's
accounted 2% exclusively.
4. Competitor Analysis
McDonald’s biggest competitors are Burger King and Wendy.
Burger King
Burger King is founded in the year 1954 by McLemore and Edgerton. It has more than 12,200
outlets in 73 countries, however, 66% of its outlets are located in the United States and 90% of
them are privately owned and operated. It is having more than 38,800 employees serving about
11.4 million customers on a daily basis.
Strengths Weaknesses
Second largest fast food hamburger restaurant
Strong brand equity
Heavily concentrated in the US market
Relies heavily on its franchises
Opportunities Threats
International market advantage.
Easy advances in technology
Changing consumer habits towards healthier
food choices
Intense competition with the competitors

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Increasing labor costs

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References
Forbes. (2015, May). Retrieved April 12, 2016, from Steve Forbes Corporation Websites:
http:www.forbes.com/companies/mcdonalds
Jones, A. (2014, July 18). Must-know: An overview of McDonald's. Retrieved from
http://marketrealist.com
Jones, A. (2014, July 18). Must-know: An overview of McDonald's. Retrieved from
http://marketrealist.com/: http://marketrealist.com/2014/07/must-know-company-
overviewmcdonalds/
Malik, M. (2011, September 10). Final project marketing (McDonald's marketing project).
Retrieved April 12, 2016, from Forum topics: http://vustudents.ning.com/
Price, L. H. (2002, May 12). Fast-Food Restaurant Industry Analysis. Retrieved from
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Rahmani, K., Emamisaleh, K., & Yadegari, R. (2015). Quality function deployment and new
product development with a focus on marketing mix 4P model. Asian Journal of Research in
Marketing, 4(2), 98-108.
Steenkamp, J. B. (2017). Global Marketing Mix Decisions: Global Integration, Not
Standardization. In Global Brand Strategy (pp. 75-109). Palgrave Macmillan UK.