Marketing Report: McDonald's Strategies, Plan, and Interrelation

This report provides a comprehensive analysis of McDonald's marketing strategies. It begins with a brief history of the company and then delves into the roles and responsibilities of marketing functions, including financing, risk-taking, standardization, distribution, product design, promotion, and pricing. The report examines the interrelationship of marketing with other departments within the organization, such as finance, human resources, production, customer service, research and development, and information technology. Furthermore, the report compares the marketing mix of McDonald's and KFC, analyzing their product offerings, pricing strategies, and promotional activities. Finally, it includes a basic marketing plan for McDonald's, offering insights into the company's approach to target market, marketing objectives, and marketing strategies. The report concludes with a summary of the key findings and recommendations for McDonald's marketing efforts.

MARKETING
ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Brief history of company...................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Roles and responsibilities of maSSrketing functions....................................................................3
TASK 2.................................................................................................................................................5
P2 Interrelationship of marketing with wider organisational context.................................................5
TASK 2.................................................................................................................................................7
P3 Marketing mix of two different business......................................................................................7
TASK 3..................................................................................................................................................10
P4 Produce a basic marketing plan..................................................................................................10
CONCLUSION...................................................................................................................................14
REFERENCES....................................................................................................................................15

INTRODUCTION
Marketing is a vital concept for any small or large business associations; it’s a key of
identifying, promoting and selling goods and services to target and potentials audiences of a
firm. Profits are the bottom of every company and it is largely depend upon successful sales.
thus, marketing is a process where managers informs, draws as well as convenience people as
their goods have value of them. Along with this, marketing build awareness among people as
they can get knowledge about new offerings of a firm and willing to purchase it (Dibb and
Simkin, 2013). The present assignment is based upon McDonald’s; it is one of a leading fast
food restaurant chain by operating over the world. The main objective of the company is to
deliver delicious taste of food item to people as they can attain and retain for long term
period. Apart from this, the report will describe roles and responsibilities of marketing
functions and their interrelationship with entire organisation. Readers will also come to know
about marketing plan of McDonalds.
MAIN BODY
Brief history of company
McDonald is known as biggest fast food restaurant that is popular for its hamburger
across the globe. Most of its restaurants McDonald's runs by a franchise as well as a affiliate
or the corporation itself. The revenues of the firm grew 27 % over the three years ending in
2007 to $ 22.8 billion, and 9% growth in operating income to $ 3.9 billion. There are over
30000 employees are presently working with it.
TASK 1
P1 Roles and responsibilities of marketing functions
Today, large and small-scale inventive and conventional, , every business
associations’ are going after a similar market. Organizations have understood the energy of
comprehensive way to deal with promoting to make and keep up an alluring interest,
notoriety, and rivalry. “Marketing is the process of preparing and executing the conception,
promotion, pricing and distribution of sales and goods in order to create exchanges which are
capable to satisfying customers’ needs and attain organisational objectives (Lamb, Hair and
McDaniel, 2011). For driven up its sales and revenues, McDonald’s spend one third of its
profits on marketing and promotional activities; it results it is a well known brand among
customers.

Nature of marketing
 Marketing is one of the vital management function that includes responsibility of
planning as well as decision making of marketing activities.
 It consists with determine the needs and demands of customers that can done through
a market study and making appropriate strategies.
 Basically, marketing seeks to satisfying customers’ requires in terms of quality, price
and availability.
Roles and responsibilities of marketing functions
Financing – Finance plays a crucial role in smoothly running of every business
organisations and its working activities. Strong financial capability of firm supports to deal
with marketing and promotional campaigns. It also involves how firms will raise their capital
in order to start operations. On the other hand, to capture customers’ eye companies are tend
to acquire new methods of payments (Malhotra, Birks and Wills, 2013)
Risk taking – Several risks are associated with moving or transferring a product from
one place to another. Business risks are – product damaging, defaults, pilferage etc. Thus, to
reduce these risks, marketers have to provide effective packaging system for protecting goods
from damages. McDonalds has its own warehouse which assists to keep product safe or
secure until they are needed.
Standardising and Grading – The term standardising is associated with setting
certain specific standards or characters, i.e. ingredient or special test which makes a brand
unique. On the other hand, Grading refers with classifying products into different categories
on the basis of their size, quality, price, features etc. McDonald’s products are graded on the
basis of quality and pricing.
Distribution – It entails with distribution of goods and services from the place of
production to the place of consumption in an effective manner. Multinational companies are
using various transports, such as- airways, railways, roadways, waterways etc. so as to ensure
that products are arrived on time for their end users. For this purpose, corporate associations
also design middleman who are involved in the process of distribution (Pike, 2015).
Product design and development – In this competitive era, product design plays a
crucial role in sales and profitability of a company. A product should be able to satisfy
customers’ needs and wants in the best possible of target audiences. Product designing also

encompasses with necessary characteristics, i.e. packaging, designing and labelling that
mostly attracts customers. Product development go through some essential stages did by the
advertisers to build up a focused on showcase determined item. Firms deal with their item by
assessing it execution and transforming them to fit the present market drift.
Promotion - It refers inform people towards the products of the firm and influencing
them to buy the same. There are different promotional channels, such as- advertisements,
personal selling, publicity and sales promotion. Along with this, promotion decisions are
taken by considering the marketing budget and depend upon which method is highly
affected sales of the company. In this modern era, companies are being used internet and
social media sites, i.e. Facebook, Twitter, Instagram in order to bring more and more people
from target market.
Pricing – Fixing prices of a product is important for marketers; prices of a good its
based upon production cost, pricing of similar product, rate of profit, government policies etc.
Thus, pricing should be fixed or execute in proper manner which it should not appear too
mush high and not too much low; at the same time it should be able to earn maximum profits
for the company. McDonald’s pricing policy are affordable by middle and upper middle class
people; the firm has acquired competitive pricing policy to attain and retain customers for
long term period.
TASK 2
P2 Interrelationship of marketing with wider organisational context
In this competitive era, business entities are trying to improve their functional
structure so as to retain in market for long term period. For maximising sales and
profitability, the marketing department of the company works with other departments by
having good relations with them. It will support in accomplishment of business goals and
objectives in a certain time period. This will also enhance the performance level of entire
association. Following are departments of an organisation and their interrelationship with
marketing
 Finance department - Finance is the process of registering all the activities of the
company in monetary terms for the purpose of generating useful reports that help the
users of these reports and statements even external or internal users. Financing also
enables promotion. The promotion of a business is an expensive venture, in some

cases costing just as much as the cost of goods sold or staffing. Financing is required
to fund promotion (Jones. and Rowley, 2011). A business will not get many
customers if it does not advertise its presence, its product/service offerings and its
value proposition, for example - low price, great value, special features.
 Human resource department - When it comes to human resources, HR's efforts
by using effective marketing techniques in order to raise profitability and sales. It is
the responsibility of human resource department is to promote employee participation;
it results effective completion of marketing and advertising campaigns. On the other
hand, optimistic endeavour, like - build employee respect and loyalty for company
and indirectly market business’s philanthropic activities to the community. Another
role of human resource managers is to resolve conflicts so as to manage healthy and
positive working environment at workplace. It results employees will retain for long
term period at workplace.
 Production and operations department - Marketing and production, both
departments has a crucial role for enhancing the performance level of business
organisation. Production managers works to determine the output level because higher
goods volume is liable for higher sales. whereas marketers focus on fulfilling
customers needs and raise the organisational profitability (Papasolomou and
Melanthiou, 2012). Production department also analyse the quality of products
supplies, availability of raw materials, time of service delivery etc. all these aspects
have a crucial role in accomplishing sales goals and objectives of the company.
 Customer service department - This unit is tend to resolve customers’ issues and
queries after or before shopping. Customer care executives of McDonald’s take order
of buyers and try to precede them as soon as possible. They also listen as well as
handle their issues regarding quality and provide proper information about the
products. 50% sales of a business organisation is depend upon effective customer
support system, for this firm provide training to employees as they can learn how to
handle customers’ of diverse nature.
 Research and development department - The principle part of R&D division is to
examine exercises which are connected with new item improvement, product offering
or benefit, or reinforce a current item or administration with extra highlights.
Promoting and R&D are really centered around understanding and following up on
client needs, it makes both of their occupations simpler and their outcomes more
beneficial. Organizations that unite R&D and Marketing around what truly matters to

their clients will fabricate a solid focused organization (Huang and Sarigöllü, 2014).
Advertising and R&D to participate is to make cross-useful groups to find neglected
client needs. This powers individuals to encounter every others' commitments and to
fashion associations and correspondence.
 Information technology - Showcasing is an administrative capacity and an
arrangement of methodology for producing, coordinating and offering some benefit to
customers and enhancing client connections to procure more benefit for the
association. Agent promoting is tied in with getting messages from potential clients in
some innovative approaches to influence their buy choices. In the 21st Century needs
the utilization of a few data innovation instruments. As far as utilizing IT, for the most
part advertising experts want to receive web based promoting and versatile
showcasing to expand their exchanges. McDonalds utilizes compelling devices of IT
in order to achieve expansive gathering of clients and decide their necessities and
needs effortlessly.
TASK 2
P3 Marketing mix of two different business
The term marketing mix is adopted so to deliver right product to their end users in a
given time period. It is one of the adequate marketing strategy by having a motive to attract
more and more people from target market. Marketing mix includes seven elements, i.e.
product, price, place, promotion, physical evidence, people and process (Kim and Hyun,
2011).
Below defined marketing mix of McDonalds and KFC: -
Basis McDonald's Subway
Product McDonald's is of a leading fast food
restaurant chain which primarily sells
burgers, fries, breakfast, sandwiches,
chicken, snacks and sides. By having a
large years of experience, the firm
always tend to improve the quality of its
products and services so as to gain high
competitive edge (Leonidou, Katsikeas
Subway offers a wide of food
items in its product portfolio. The
very first product was launched
by Subway is Submarine
Sandwich and today is popular
among customers. Its restaurant
menu encompasses variety of
sandwiches, burgers, breakfast

and Morgan, 2013). The main products
of McDonald's are - egg McMuffin, Egg
White Delight McMuffin, Quarter
Pounder with Cheese, Double Quarter
Pounder with Cheese, Hamburger,
Cheeseburger etc.
items, drinks etc. In 2006, the
firm has introduced its own pizza
and burger in order compete with
McDonald's.
Price In order to remain competitive and
successful corporate associations use so
as to sell their products. Cost plus
pricing, value pricing, price
discrimination and going rate are the
main pricing techniques. The prime aim
of McDonald's is to provide food items
at competitive pricing policy.
When the restaurant sets its prices on the
bases of demands, it doesn't consider
franchisee as they sets their own prices.
However, franchisees of the company
acquired competitive pricing policy in
order to gain high cutting edge.
Subway has premium pricing
policy, as its prices are higher
than McDonald's. However, its
products are always carries low
calorie ingredients which
deserves such prices.
The business organisation always
trying to maintain its quality as
well as quantity, i.e. amount of
sub-sandwich is too big, it is at
par with other competitors (Mintz
and Currim, 2013).
In UK, the price of a 6-inch
Meatball Marinara sandwich is
typically £2.99, while the foot-
long one is £4.49.
Place Place entails with distribution. There are
several distribution strategies are
acquired by an organisation so as to get
products to their end users. McDonald's
provides home delivery services and its
outlets are being opened 24 x 7 a day.
Due to have intensive distribution
channels supports company to sell their
products to its target audiences
(Menegaki, 2012).
Subway's outlets can be easily
found in all developing and
developed countries. People can
usually finds it in amusement
parks, shopping malls, airports,
business centres etc. Along with
this, SUBWAY restaurants
provides eat-in and take-away
services. Most of its outlets offers
home delivery services so as to

Most of the McDonald's restaurants are
located at off-beat premium places that
has turned out to a boon for the brand.
gain higher customer satisfaction
level.
Promotion In order to promote its products and
services, McDonald's uses personal
sales, effective public relations, sales
promotions etc.
The firm uses their slogan i.e. ‘Eat fresh
for promoting high quality as well as
freshness which make their foods more
imperative.
Along with this, the firm has acquired a
wide of digital media techniques in order
to attain and retain customers for long
term period. For this it uses print and
electronic media, i.e. television, radio,
newspapers, magazines, social media,
internet, web portals.
The business organisation has
acquired wide range of media
channels in order to arrive large
group of customers in a certain
time period. People have seen its
advertisements on social media
and televisions (Pomering,
Noble, and Johnson, 2011).
Annually, Subway spent $114
million on TV advertising while
sporting programmes.
Along with this, the business
organisation also endorsed
celebrities for brand promotion.
The firm was also engaged in
Olympian swimmer Michael
Phelps and Brazilian football
legend Pele.
People As a customer centric organisation,
McDonald's always focused on its
quality as well as quantity. In context of
business organisations, several number
of people get involved in every stage of
production to deliver services
(Chikweche and Fletcher, 2012). For
McDonald’s generally the people are
employees at store, manager who
manages them etc.
Customer service is one of the
major priority for business
entities as it serves billions of
customers over the globe.
Subway is always tend to hire
well qualified and talented people
who are able to deliver
qualitative services.

Process It is associated with the activities that are
taken into consideration for delivering a
product or service.
McDonald’s as they have to maintain
homogeneity in the process of serving,
preparation and with all this they have to
also manage the cultural and legal needs
of the UK environment, like usage of
oils components, health issue prescribed
by UK government agencies etc.
It entails with set of actions that
is executed in order to
accomplish a specific task or
activity, i.e. processing buyers'
order. When an individual enters
in Subway's outlet firstly he or
she selects type and size of food,
then amount of cheese and
further necessary ingredients, i.e.
salad or sauce. This is a typical
process that is acquired by
Subway for purchasing product
(Al Muala and Al Qurneh, 2012).
Physical evidence It is linked with appearances, store
ambience etc. Physical evidence
involves when a customer visit into
McDonald's outlets, they feel fresh and
free to eat and drink here.
It states with physical
environment of the company that
is valued by customers or visitors
experience. In context of
Subway, physical evidence
involves seating facilities,
employees dress code etc.
TASK 3
P4 Produce a basic marketing plan
The term marketing plan refers with setting up objectives for doing marketing
activities and then scheduling necessary steps to attain these objectives. Marketing planning
is one of the crucial task for marketers as it governs growth, survival as well as prosperity of
business organisation so as to face this ever changing and competitive environment. It
involves formulation of effective marketing strategies by having a special reference of
product development, channel design, profitability, market development, profitability and
sales promotion (Tapp and Spotswood, 2013). The prime objective of marketing planning is
to eliminate future risks and uncertainty that will affect business operations in direct and
indirect manner.

Overview of the company – McDonald’s is a leading chain of fast food services
which operates across the world. Its 40% of revenue comes from Europe - mostly from the
UK, France, Russia and Germany. The firm serves 69 million customers are served every day
and there are now 36,258 McDonald’s restaurants in 119 countries, of which 29,544 are
franchised.
Mission and vision of the company - McDonald’s mission statement is to become
customers' favourite place where they feel free to eat and drink. In order to accomplish this
mission, the firm is dedicated to being a great place for our people to work; to being a strong,
positive presence in your community; and to delivering the quality, service, cleanliness and
value our customers. On the other hand, the vision statement of the firm is to be world’s best
fast service restaurant experience. Being best means providing outstanding quality,
cleanliness and value for customers.
Situational analysis – It can be done by SWOT analysis of the company.
SWOT analysis of McDonald’s
STRENGTH
 McDonald’s has strong brand Equity
over the globe.
 42% of UK fast-food hamburger
business
 Consistency of food
 Successful items: Fries, Happy Meal,
Big Mac, Egg McMuffin, Promotions
 Overseas market (Sheau-Ting,
Mohammed and Weng-Wai, 2013).
 Balance sheet position
 value proposition and offering, to
encourage customers who visit coffee
shops into McDonalds.
WEAKNESSES
 Declining market share
 Weak product development
 Disgruntled franchisees
 Quality and taste of products
 Slowed revenue and income growth
OPPORTUNITIES THREATS

 International expansion
 Growing dining-out market
 Joint ventures with retailers (e.g.
supermarkets).
 Consolidation of retailers likely, so
better locations for franchisees.
 Respond to social changes –
by innovation within
healthier lifestyle foods.
 Mature/overstored industry
 More health-conscious consumers
 Changing demographics
 Fluctuation of foreign exchange rates;
Economies
 Recession or down turn in economy
may affect the retailer sales
Target market segmentation – The market segmentation of the company is classified
into three categorised, such as- demographic, psychographic and behaviour segmentation.
McDonald’s produce products specially for the age group of 14 to 40 years of people.
Identification of Marketing strategy – In order to grow and diversify in target market,
McDonald’s has acquired Ansoff Matrix so as to focus on present and potential products and
markets & customers by considering ways to grow via existing products and new products,
and in existing markets and new markets (Raj, Sasikumar and Sriram, 2013).
Existing products New products
Existing
markets
Market Penetration
hamburgers, cheeseburgers, chicken
products,
French fries, breakfast items, soft drinks,
milkshakes and desserts.
More recently, it has begun to offer salads,
wraps and fruit
Product Development
Innovation in all products,
Introduction of new products
(Brands)
New
markets
Market Development
Uruguay
Venezuela
Diversification
Pret A Manger
Chipotle Mexican Grill

Yemen
Formulation of marketing budget
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 75000 25000 20000 15000 20000
Investment 25000 14000 15000 18000
Total 75000 50000 34000 30000 38000
Marketing
expenditures
Advertisement 10000 9000 7000 6000 6000
sales promotion 7000 4000 3000 7500 9000
Direct marketing 8000 2000 5000 7200 2000
Total 25000 15000 15000 20700 17000
Available balance 50000 45000 19000 12300 21000

CONCLUSION
From the above mentioned report it get concluded that marketing plays a crucial role
in growth and development of every business organisations. It helps firm in raising sales and
profitability by promoting products and services. Marketing builds strong interpersonal
relationship of a firm with its target audiences that improves its market goodwill as well as
brand value. The report has stated different marketing functions, such as- financing, risk
assessment, product designing and development, distribution etc. Apart from this, marketing
mix refers with a tactics that is used to put right product on right place, it involves four main
elements, i.e. product, price, place and promotion.
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