Marketing Essentials: McDonald's Marketing Strategies

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UNIT 2
MARKETING ESSENTIALS

Table of Contents
INTRODUCTION........................................................................................................................3
TASK 1...................................................................................................................................... 4
INTRODUCTION....................................................................................................................4
COMPANY OVERVIEW..........................................................................................................4
PART A RESPONSIBILITY AND ROLE OF MARKETING AND INTERRELATIONSHIP WITH
OTHER FUNCTIONS OF COMPANY........................................................................................4
PART B 7P's APPLICATION IN ACHIEVING BUSINESS OBJECTIVES.......................................10
CONCLUSION...................................................................................................................... 14
RECOMMENDATIONS.........................................................................................................14
TASK 2.................................................................................................................................... 15
MARKETING PLAN OF McDonald’s.....................................................................................15
CONCLUSION...................................................................................................................... 18
CONCLUSION.......................................................................................................................... 19
REFERENCES........................................................................................................................... 20

INTRODUCTION
The term marketing has been considered as an important asset towards the progress of an
organization defined according to a modern business plan. The report serves to provide a
detailed description of the marketing mix along with the set of various marketing strategies
which are identified to be applied in an organization named as McDonald’s. The company
has been identified as the most famous company offering varieties of eatables to the set of
customers according to the background and taste of the customers. The company originally
serves to belong towards the fast food restaurant. The company was developed on 15th May
1940 by Maurice and Richard McDonald. At present, the company serves to determine its
set of variations all over the world (Brandes and Brandes, 2019).
The main motive of defining the report is to analyze the various set of factors and elements
of the company named as McDonald's in terms of defining the effective set of marketing
strategies which leads towards the high level of profit generation in the company.
Figure 1: Mc Donald’s logo
Source: (Barnes, 2016)

TASK 1
INTRODUCTION
The roles and functions of the marketing have been defined as the combination of various
duties and responsibilities determined in terms of analyzing the potential ability of the set
of products defined in an organization. These types of products contribute to defining the
most accurate decision towards the growth of an organization. The various elements
defined towards the effective decision-making in an organization mainly includes market
analysis and research, product development, finance team, sales support, etc.
COMPANY OVERVIEW
The company named as McDonald’s has been recognized as an organization belonging to
the fast food sector of America. The company was founded by Maurice Mc Donald and
Richard in San Bernardino, California, UK. The aim of the company is to provide tasty and
hygienic food to its customers as per the taste of the customers. The company has
established 1300 restaurants among which 1100 are defined as franchises. The company
has a total of 120,000 people working in the entire world. The company includes a wide
range of eatables and snacks including burgers, wraps, milkshakes, fries, chickens, and many
types of breakfast. At present, the company has defined its success by providing its services
in 37,855 restaurants in the entire world (Kent and Pauzé, 2018).
The company has been identified as public-oriented along with being productive. In this
company, the values associated with the shareholders are provided by the company itself.
On being recognized as the most popular company in the sector of fast food and
restaurants, the company serves to determine the new and attractive set of procedures and
strategies which defines the innovative and effective set of product development leading
towards the effective profit generation (MODI, 2017).
PART A RESPONSIBILITY AND ROLE OF MARKETING AND INTERRELATIONSHIP
WITH OTHER FUNCTIONS OF COMPANY
MARKETING FUNCTION COMPONENTS

The terms marketing functions serves to determine the set of duties and responsibilities
which defines potential to the effective and attractive set of products over the marketing
environment, leading towards the promotion of an innovative set of products in an
organization. The marketing functions include development, research, and strategies
defining the introduction of the product over the new marketing environment defined
within an organization. The overall performance of an organization can be increased by
defining the operational functions defining interrelationship between various functions
associated with marketing functions (Wachira and Kariuki, 2018).
The McDonald’s marketing team serves to provide a wide variety of products satisfying the
demands of the people belonging to various different age groups. The company offers
variation in taste as per the choice of the people and the background in which the company
has been established. The set of these objectives are achieved in the company by applying
the various strategies and components which includes flexibility of the product, punctual
delivery of the product and services, excellent customer services, advanced technology
implementation. As the company produces millions of burgers per day, the employees
within the company ensure that the quality and taste of the burger is maintained every day.
Along with this, the company offers a variety of products defining fruits, breakfast, salads,
and meals of kids to fulfill the demands of the customers. The main items of the company
include the wraps and Mc Cafe in Europe which attracts the majority of the customers. The
finance department of the company provides a stable budget according to the evaluation of
various strategies defined by the marketing department. In terms of effectively defining the
accurate set of procedures and strategies towards the entire working environment of the
company, the production team of the company serves to have communication with logistics
team delivering the set of products according to the demands of the customer. Thus, the set
of functional units which are defined in an organization serves to be interdependent on
each other defining the growth and development towards the organization by introducing
effective business plan (Pereira et al., 2019).
MARKETING CONCEPTS

The set of concepts which are defined towards the marketing of McDonald’s is being divided
into 5 major components as per the determination of the factors by the marketing team of
McDonald’s, which are listed as:
CONCEPT OF PRODUCTION
It defines the way of product selection defined by the customer including an innovative set
of techniques and strategies along with maintaining the standards of the product.
McDonald’s serves to offer varieties in terms of fast foods to satisfy the demands of the
customers.
CONCEPT OF SELLING
It defines the way in which the requirement of the customers is focused related to the
selling of the various products. It majorly emphasizes the development of the st fo services
leading towards the marketing promotion (Elbeck, 2018).
CONCEPT OF MARKETING
The marketing concept of McDonald’s includes the values of the products in such a way that
it serves to attract the majority of customers. McDonald's has defined various new ways of
marketing the new set of products introduced by the company in order to compete
effectively with the competitors.
SOCIETAL MARKETING CONCEPT
The McDonald’s includes the set of strategies and techniques applied towards the
development of product according to the variation in the taste of people from one country
to another. This unique quality of the company serves effective in defining the brand image
of the company leading to a high level of profit generation (Spiteri et al., 2018).
MANAGEMENT OF MARKETING
The term marketing management has been defined as the process including the planning
and execution of a various set of techniques and strategies related to the concept of
marketing.
The set of roles defined by the McDonald’s in marketing are:

Marketing Strategies: The manager of the McDonald’s determines the new set of strategies
as per the demands and requirement of the target customers. This leads in defining equality
towards the set of marketing opportunities defining the aims of an organization.
Marketing's Information System: This includes the information related to the real-time
logistics defined on the basis of planning, implementation, and control over the marketing
strategies related to the channel of network distribution (Piercy, 2016).
MONITORING OF MARKETING ENVIRONMENT: It determines constructive response defining
the development of services and products in an organization. The McDonald’s includes the
set of factors such as economic factors, legal factors, changing marketing traits and social
changes.
MARKETING RESEARCH: The McDonald’s serves to determine the research related to the
knowledge of products and price in terms of satisfying the demands of the customers in an
effective way.
MARKETING SEGMENTATION: In an organization named as McDonald’s the marketing
manager serves to identify the demands and requirement of the customers in relation to
the large markets defining the goods and services effectively in an organization (Jenyo
Gabriel and Soyoye Kolapo, 2015).
BRAND EQUITY: McDonald’s serves to determine its popularity by introducing the effective
set of advertising strategies in the company. The popularity of the brand among the
customer leads to the development and increase of the volume of sales in an organization.
MARKETING FUNCTIONS
The main functions of marketing defined towards the McDonald’s are defined as:
RESEARCH: In terms of providing an effective set of products and services to the customers
with the changing demands, research serves as an important factor. It provides the
implementation of a new set of strategies and innovative techniques related to raw
materials, finance, and logistics.
STRATEGY: In the marketing environment of McDonald's, the strategy has been identified as
the collection of research. It includes the ways of defining the strengths and weakness

associated with the operational department of the company. It aims to define realistic
possibilities and outcomes identified in research (Arendt and Allain, 2019).
PLANNING: The marketing department of McDonald's include distribution, financial
planning, communication and another set of procedures. The determination of the specific
timeline leads towards the achievement of the goals and objectives of an organization.
TACTICS: McDonald's serve to achieve small plans and terms introduced to attract a major
number of customers. It serves to determine the offers applied over the products for a short
duration of time which enhance the marketing plan of the company. It leads towards the
effective profit generation of the company and enhancing the level of sales in an
organization (Stobart, 2016).
MARKETING FUNCTIONS INTERRELATION
In McDonald’s the interrelationship defined among various functions are defined as:
The connection in between the marketing and the financial department, it has been
analyzed that the marketing department includes the economic resources associated with
implementation, planning and research evaluation leading to define the marketing
strategies and plan towards an organization that is provided by the financial department of
an organization. The roles and functions of various departments are closely related to the
financial department (Wrigley and Ramsey, 2016).
In defining the rise of sales in an organization, the set of policies defined by the HR
department serves necessary to be included which serves to be linked with the marketing
department of the company. In case when the marketing department is unaware of the
various policies determined by the HR and financial department, it will affect the overall
growth and profit generation ability of an organization. Thus, in terms of defining the
growth and development of the company by effectively defining the various set of
procedures and strategies, it serves mandatory to establish the accurate way of
communication among the various set of departments defined in an organization (Barennes
et al., 2016).

CONCLUSION
In terms of defining the various set of roles and responsibilities defined over the marketing
structure of McDonald's, it has been found that there finds the need to effectively establish
proper connection and communication among the various set of departments which are
included in defining the policies and strategies related towards the growth of an
organization.
RECOMMENDATIONS
It has been recommended that the most effective and accurate set of procedures and
strategies must be developed in order to achieve the goals and objectives defined by an
organization. It will also serve towards the introduction of an innovative and creative set of
products which leads to enhance the profit generation ability of an organization (Coleman,
2018).

PART B 7P's APPLICATION IN ACHIEVING BUSINESS OBJECTIVES
In terms of achieving the business objectives and goals in an effective manner, the
marketing mix has been introduced towards the marketing procedure of an organization.
There are different ways which have been defined by an organization in order to achieve the
marketing mix in an organization. It serves to define products, market demographics, and
services defined in an organization. It contributes towards the better understanding of
products to the marketers. The marketing mix has been broadly classified into 4P’s including
price, product, place, and promotion. In terms of critically evaluating the marketing mix, it
includes 7P’s defining product, price, process, promotion, people, place and physical
evidence (Turban et al., 2015).
The main marketing strategy of the company is to focus on the proper way of maintaining
prominence over the global market. In order to achieve this goal, the company offers
advertising and sponsorship where the campaigns are developed by the company for
advertising focusing on children and parents. The company also sponsors sporting events
like the FIFA world cup and Olympic Games. In order to entertain and attract children, the
company has introduced Ronald McDonald and other mascots which defines friendliness
and playfulness for children. In terms of dealing effectively with local competitors, the
company serves to introduce the set of products which includes the taste of the local food.
Along with these, the company has also established the charitable trust at the name of
Ronald McDonald with defined objectives which leads to improvement of well-being and
health of the children (Symeonidou and Vagiona, 2018).
MARKETING MIX OF KFC V/S McDonald’s
In terms of defining an effective set of techniques and procedures towards the marketing
environment of McDonald's, it serves necessary to define its competitors and compare 7P's
of marketing with each other. One of the main competitors of McDonald's is KFC.
KFC serves as an acronym for Kentucky Fried Chicken. The company belongs to the sector of
defining fact food restaurant chain having specialized in fried chicken. The company was
founded on 20th March 1930 in North Corbin by Harland Sanders. At present, the company
has established its empire in over 118 countries having outlets greater than 18,875. The

company has been determined as the subsidiary of Yum! Brand. The company serves to give
tough competition to McDonald’s (Agnihotri and Bhattacharya, 2017).
Marketing mix of KFC:
PRODUCTS
KFC emphasizes majorly over the fried chicken along with defining varieties of burgers such
as Tower and Zinger Burgers. The company also defines wraps in the form of Boxmasters
and Twisters. It serves the variety of finger foods defined as hot wings and crispy chicken
strips. It has launched the Flaming Crunch Chicken along with chicken nuggets and
popcorns. Apart from this, the side dishes includes bread rolls, French fries, PepsiCo soft
drinks, and salad.
PRICE
In terms of attracting a major number of customers towards the organization, KFC serves to
offer the prices which are easily affordable by the people. KFC also defined combo offers
such as a combo of burger and PepsiCo. Along with this box meals and individual meals are
also offered by the company as per the demand of people.
PLACE
KFC has been running in over 81 cities having 300 outlets. The distribution of the company is
based on company run outlets and franchisee. The company also serves to provide online
delivery of services. The company has overtaken Pizza hut defined in the restaurants of
quick service (Arnold, 2017).
PROMOTION
KFC promotes its products and services by providing offers to an existing menu, kids meals,
gift coupons, and T-shirts. It includes online advertising and advertising done on television.
It displays new products in outlets by displaying on LCD screens.
PEOPLE

The set of people are involved in terms of defining services to customers. For accurate
delivery of services, the staffs are trained by the company. The company provides some
guidelines to be followed while communicating with customers.
PROCESS
KFC starts its process when a customer enters an outlet. The convenient and easier process
leads to customer satisfaction. The process also includes online delivery of products (Shetty,
2016).
PHYSICAL EVIDENCE
The interiors of KFC are made as per the standards defining parent company. It leads to
building up a positive effect on the satisfaction of customers. It also uses the best
equipment for technology.
MARKETING MIX OF McDonald's
The company named as McDonald’s originally serves to belong towards the fast food
restaurant. The company was developed on 15th May 1940 by Maurice and Richard
McDonald. At present, the company serves to determine its set of variations all over the
world. The 7P'S in McDonald's are defined as:
PRODUCT
The company offers non-veg and veg menu as per the customer demand. The company
offers beverages and frozen dessert. The motive of offering various products is to define
care towards the religion and culture where the company provides separate areas for
cooking veg and non-veg food (Kotler and Armstrong, 2010).
PRICE
The company offers affordable products where Mc Aloo Tikki is available at Rs 20 to 39 and
Mc Veggie is available at Rs 50 to 60. The company emphasizes mainly over the “Happy
Price Menu”. It provides low-cost food franchise and varieties of combos.
PLACE