McDonald's Marketing: Strategies, 7Ps, Market Analysis & Planning

This report provides a comprehensive analysis of McDonald's marketing strategies, focusing on the application of the 7Ps (Product, Price, Place, Promotion, People, Process, and Physical Evidence) in their marketing planning process. It delves into the situational analysis, examining the market overview, competition, objectives, SWOT analysis, and Porter's Five Forces. The report also outlines the roles and responsibilities of a marketing manager, the impact of marketing on other functional departments, and the value and significance of the marketing role within the organization. Furthermore, it discusses the development and evaluation of McDonald's marketing plan, highlighting the company's efforts to adapt to changing trends, customer expectations, and the competitive landscape in the fast-food industry. Desklib offers a wealth of similar solved assignments and study resources for students.

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Contents
Introduction...........................................................................................................................................2
Introduction to the concept of marketing that includes current as well as future trends.....................2
Overview of Different marketing processes..........................................................................................3
Situational Analysis................................................................................................................................3
Roles and responsibilities of the marketing manager............................................................................4
Impact of marketing on other functional departments.........................................................................5
Value and significance of marketing role...............................................................................................6
Conclusion.............................................................................................................................................6
Application of 7`ps to marketing planning process................................................................................6
Developing and evaluating the marketing plan.....................................................................................9
Conclusion...........................................................................................................................................11
References...........................................................................................................................................12

Introduction
Mc Donald’s is one of the most famous fast food restaurant, which started as a Hamburger
joint, but later it started offering cod drinks, French Fries, and ice-cream. Mc Donald’s is one
of the fourth largest employee concerned company. Currently, business quarterly employs
around 1.9 million all over the world. The union of its resources gives it a huge brand name
to the organisation that further assists in marketing. McDonalds food chain have spread in
around more than 100 countries in the whole world where 80% of the outlets are based on
franchise model. Although, this sector of informal eating out segment attracts huge
competition and stagnant growth and this market is able to attract customers to around
36000+ stores.
Introduction to the concept of marketing that includes
current as well as future trends
McDonalds is a world market leader that has certain goals which strives to attain 100%
customer satisfaction that enabled it to increase its market share and optimise in order to
reduce costs. The current strategy of McDonalds aims to reach its customers that includes
concern regarding healthier foods, food quality and nutrition, restaurant diversity, larger
menu, and finally positioning the brand. To handle changes in trends and concern towards
healthier food, McDonalds have changed the way it prepare the food. It ensures that it uses
100% vegetable oil, less amount of sodium and low fat milk for the milk shakes. The quality
as well as the safety are of paramount significance in McDonalds. Moreover, it can be
achieved with strict and higher product quality, strict enforcement for the operating
procedures and maintain a close relationship with suppliers. Mcdonalds targets to achieve
other important expectation from customers. In order to accomplish the expectations, the
company has introduced the breakfast menu with wide variety of food products. Apart from
this, restaurants have become customised and their menu would confirm as per taste and

preferences of the people in that particular location. With a view to position the market,
McDonald’s positions sponsor events and sports and events such as dome`s community
programme and child safety week.
The company is no longer relying on traditional and TV advertising, the company has opted
for more holistic digital strategy in order to capture the attention of “Y” generation people.
Overview of Different marketing processes
While going through the different marketing processes, it is seen that overview considers
situational analysis as an important component. As the company is successfully widely
spread over several businesses in distant countries of US and other European country. The
company is maintain its reputation as it is able to develop strong market planning and an
organised management.
Situational Analysis
Analysis is a significant part of the business to grow. Every internal and external environment
in regards to the performance of the employees, managerial body, and productivity with the
same value. Whereas, the rivalry and external threats in the market should be analysed in
order to serve the customers with the quality services.
Overview of the market- the market should be examined on the basis of price, competition,
and product availability. The scenario of the company and its position at the marketplace
should be analysed well and McDonalds have a bright position regarding this.
Competition analysis- High competition suggests that the rivalry between several
organisations. Market competition and external threats can put the company back.
Objectives and goals
Goals and objectives should be determined enough and should have fixed and greater
insights. While regulating resources and capital in a positive way that has to be found to cast

a fair impression on customers. Providing the appropriate products at an appropriate price
drives the customers to take interest in the organisation.
SWOT analysis- the crucial plans and strategies led and enforce a company to become unique
where SWOT stands for Strengths, Weaknesses, threats and opportunities. Several factors
that threaten the business environment directly affect the success of the organisation.
The five forces Porter`s model undertakes an analysis of competitive positioning. Some of the
important five elements of this model includes threat of rivalry, new entrants, bargaining
power of buyers and suppliers, and the threat of substitutes. Competitors such as burger king,
Dominos, KFC, and Wendy’s that indicates competition is being growing intensely. With so
many popular fast food companies, new entrants is not a major threat as McDonalds enjoys
an edge over its competitors for the goods. In the supply segment, company does not only
have single supplier at global level. There exist higher possibilities of healthy substitutes that
pose a threat to organisation. Mcdonalds concentrates on health side by concentrating on
healthy food items in menu, so there still exist threat of substitutes.
Roles and responsibilities of the marketing manager
Major roles of marketing includes-
Formulation of marketing strategies- the first stage of making of marketing strategies depicts
development of marketing strategies and future planning of business enterprise. A manager
recognises the need to fulfil the needs of the customer with their products and services. By
initiating the development of marketing strategies, a manager is able to create a balance
between organisational goals and the existing opportunities.
Monitoring the marketing environment- Marketing process plays an important role in finding
new developments in the marketing environment, these certain development provide a
constructive responses to the development of new product and services. New developments

include changing market traits, internal and external changes of political and legal market,
and socio-economic forces.
Conduct Market research- Marketing research is a major role of marketing manager.
Research involves specific knowledge regarding product, price and also the consumers so
that it can communicate best products and services in market.
Market segmentation- In the era of identifying appropriate audience to target them has
become main role of marketing manager. As globalised market is highly volatile, as
organisations needs accurate segmentation that has been provided by marketing. It can help
the organisation to identify the customers in large diverse market and promote goods and
services among them.
Impact of marketing on other functional departments
Marketing functions surrounds various different functions such as distribution system,
finance, and advertising but these activities come under the process of marketing process.
The key marketing functions elaborated below are-
Research- As in the business enterprises, market researcher plays an important role. Other
functions can not be even extended if research is not undertaken properly and business is also
not possible. Research helps in collecting valuable information regarding market, tactics,
logistics, raw material, finance, and also the business prospects that can be achieved only
through research.
Strategy- After gathering all the relevant information from research, it is just processed out to
judge all the possible weaknesses and strengths among business operations. The strategy
formed helps the organisation and guides in order to compete with the strong competitive
market.

Planning- completion of research and strategy procedures is necessary for the function of
planning procedures in marketing. It involves financial planning, identifying the sales figures,
and distribution communication. The planning department uses specific timeline in order to
plan certain strategies to focus on organisational goals.
Tactics- key role of marketing is tactics, as there are small and short term plans that must be
implemented in order to attract target audience. I includes limited time period that further
provides promotional boost in the plan.
Value and significance of marketing role
Marketing functions are very much linked and related to various departments of the
corporation. Every marketing function requires correct description starting from the
production services of the goods and services of the organization in order to provide
marketing plan. Apart from this, it requires human resources and manpower from HR
department through recruitment and selection, economic conditions help from finance
department, and the logistics and other distribution services from distribution network etc.
The process of marketing wants have to be communicated and sponsored by the other several
departments of the corporation. If marketing functions are not known very well in regard to
the inventory of raw materials or the production capacity of the enterprise, then marketing
plan will result into unnecessary blunders and losses.
Conclusion
From the basic structuring of marketing, it has been seen that Marketing is an important part
of functional activities and each activity is directly or indirectly connected to the success of
the organisation.
Application of 7`ps to marketing planning process
Product- As McDonald’s provides several business services, the company has a product mix
that is composed of beverage and food products. Product represents product-mix that covers

various organisational outputs especially in regards to target market. The main product line
covers Hamburgers and sandwiches, beverages, snacks and sides, salads, fish and chicken,
deserts, and shakes. Product is a fundamental determinant of McDonalds brand and it also
represents corporate image. Slowly, the business is expanding its product-mix and for now
customers purchase several products such as fish, desserts, chicken, and breakfast meals.
While diversifying the product lines, the organisation is able to satisfy the market demand,
improve the sales, and delegate risks in the whole businesses. While considering the risk,
more diverse product mix decreases the company`s dependency on only few market
segments.
Price- this element of marketing mix specifies certain price points and this price ranges from
company`s food to beverage products. The aim of pricing to decide the consideration in order
to maximise the profit margins and sales volume at the same time. The company uses a
combination of pricing strategies such as Bundle pricing strategy and psychological pricing
strategy. In the bundle pricing strategy, the company offers meals and other bundles of
product which are discounted. For instances- customers can also buy happy meal or also an
extra value meal in order to optimise the value of cost and product. Whereas, on the other
hand, in psychological pricing where the organisation uses the pricing which appear to be
more affordable. This pricing strategy will encourage the customers to purchase the
organisation`s perceived price as per the affordability.
Place- this element includes venues and locations where the products are actually offered and
customers can easily access them. The business uses several places as a part of 7P variable.
Places include restaurants, McDonald’s mobile application, Kiosks, and Postmates
application and websites. Its restaurants are among the most of the sales revenue. Some
restaurants manage Kiosks in order to sell a limited selection of various products such as
sundae as well as other desserts. It is observed that in case of Kiosks, the company uses

professional sports competitions and other seasonal events. This element also includes mobile
application of company. These created virtual place from where the customers can access the
information regarding company`s products and purchase the products. For instance- the
mobile application for company iOS and Android system allows the customers to claim
special deals. On the same side, finding the same restaurant locations, pay for place orders
that involves participating McDonalds restaurants.
Promotion- this element of marketing mix describes the tactics for the business so that it can
communicate with the customers. This creates marketing communication plans in order to
consider the target customers. For instance- the organisation provides new information in
order to induce consumers to buy new products. The company uses following promotional
mix that are arranged as per the significance in business such as Advertising, public relations,
direct marketing, and sales promotions. Advertisement is one of the notable promotional
tactics used for McDonalds. Apart from this, the company uses sales promotions, and public
relations in order to draw more customers towards the organisation`s restaurants. For
instance- the company offers discount coupons for specific product and product bundles as a
way to attract more customers. Company`s public relations activity helps the organisation to
promote the business to target market with the help of goodwill and strengthen the brand.
People- the people of the organisation includes management, customer representatives, and
employees, etc. Most importantly, who runs the organisation, manages it, and represents the
organisation and this is the reason why it is important to maintain HR. People is amongst the
important essentials of the marketing mix which signifies that people are appropriately
associated with the business both in terms of managing internal and external environment.
While considering the external and internal in relation to people`s context runs the firm, and
people at the same time buy the products. In the external environment, people mainly refers
to the consumer. McDonald's wants to fulfil their customers to increase revenues in the

business. Whereas, internal people signifies the employees. In McDonald's, all the employees
are highly skilled and professional and treats its customer with great loyalty which increases
the brand image.
Physical evidence:
McDonald's is the renowned and largest food destinations among many people in the whole
world, and in his way they provide varied choices to the public. Different food and brand
image attracts more people or even same people with an aim to taste the new stuff or to get
more people every day. McDonald's deliver an auto-generated bill for their customers to
provide the trust of the products which they are providing. Besides this, they also send SMS
to their patent customers who have attached their mobile number to the company for being
getting updated with the latest news (Mcdonalds.com, 2018). People can also ignore the food
because the food or again any unlucky incidence within the store by presentation the bill as a
prove.
Process- it is last element of the marketing mix that refers to the process of how a consumer
can procure the products. McDonald's offers the huge variety of goods to the customer with
very fast service. The company has more than 36,000 stores all over the world. Apart from
this, also have the free online home delivery system to the customers. The consumer can
order food online, and the free delivery system is also available in McDonald's. In response to
the McDonalds, ASDA has few stores from where people can get the products (Asda.com,
2018). Online service is not also flexible like McDonald's.
Developing and evaluating the marketing plan
In order to create an effective marketing plan, the company has to revert to those market
opportunities that lie within the external environment-

Identifying the niche market- the company uses a mix of demographic, psychographic and
geographic segmentation in order to identify the taste and preferences of the customers. In
order to cope up change in buying pattern of the customers, their buying behaviour &
increase in income level, Fast Food Company has started by using distinguished targeting
market strategy to furnish to the customer growing wants. From the very beginning, the
company has evolved itself from various positioning which is product-based in order to use
the Value-based positioning strategy. In order to accomplish the goals and approaching the
target market, it can be seen that a company has a set vision which is beyond the things that
we sell. The company is using positive force for our customers, our people, our communities,
and our world.”
Clear insight into why a potential customer would buy from McDonalds as McDonalds has a
huge brand name in terms of variety, ambience, and quality and also takes part in CSR
activities. Apart from this, the company conducts a situational analysis to know the impact
that is likely the business or the advertisement can have which will directly affect the
business organisation and its profitability.
Identification of competitors that would also want your target customers includes Burger
King, Dominos, and other local fast food restaurants. Apart from this, the company enjoys
Extensive branding with the help of tie-up & sponsorships with most renowned entities such
as FIFA that has helped the company to increase its visibility in the International market. The
target market of the company is regular buyers of McDonald’s are generally lies in age group
of 15-40 years who love to have hangouts with their family, friends, and loved ones. The
company have attracted and induced the younger population who are in schools or college.
Recently, the company has damaged its brand equity by lessening its brand equity and
disputes among the employees regarding their attitudes. This scandal has positioned the

company as a wrong doer in the eyes of the customers but slowly the company was able to
recover its position by improving the relations among the employees.
Further, it is important to decide the approach of marketing that defines what number of the
customer base has to be targeted to be increased with the help of budget so that each element
of the marketing process can be well-known with their budgets in the spending of total fund
for promotional activities.
Promotional activities Estimated budget
Advertisement $120
Public relations $50
Promotion through social media $150
The above estimated budget is based on previous year’s expenses on advertisement, public
relations, word of mouth and promotion through social media so that the product can be
purchased by the customers.
Conclusion
This report had a strong discussion on marketing and its relationship between other
organisational functions. Moreover, the overall 7’ps is compared in the business organisation
to get achieve the business goals. Apart from this, a brief of the construction of marketing
plan has its evaluation has been undertaken in the report.