McDonald's Marketing Concept: Analysis, Industry Trends, and Extension

This report provides a detailed analysis of McDonald's marketing concept, exploring various philosophies such as production, product, sales, marketing, and social marketing. It evaluates the strengths of McDonald's strategies, including brand extension, pricing, employment opportunities, and local management. The report also examines the dynamics and trends of the fast-food industry, including a PESTLE analysis covering political, economic, technological, social, environmental, and legal factors. Furthermore, it discusses potential target markets for new brand extensions and offers recommendations for increasing sales through new strategies. The report concludes by highlighting the importance of adapting to changing consumer preferences and maintaining a focus on quality and value.

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Marketing Concept

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Contents
Introduction.................................................................................................................................................3
Part 1...........................................................................................................................................................4
Philosophy and concepts of marketing........................................................................................................4
Production concept......................................................................................................................................4
Product concept.......................................................................................................................................4
Sales concept...........................................................................................................................................5
Marketing concept...................................................................................................................................5
Social Marketing concept........................................................................................................................5
Strengths of the organization’s strategy.......................................................................................................5
Part 2...........................................................................................................................................................8
Dynamic and trends.....................................................................................................................................8
Dynamic of fast food industry.....................................................................................................................8
Market trend of the fast food industry.........................................................................................................8
Pestle of the fast food industry....................................................................................................................9
Political.......................................................................................................................................................9
Economical................................................................................................................................................10
Technological............................................................................................................................................10
Social.........................................................................................................................................................11
Environmental...........................................................................................................................................11
Legal..........................................................................................................................................................11
Extension of New brand............................................................................................................................12
Potential target market...............................................................................................................................12
Part 3.........................................................................................................................................................14
Recommendations.....................................................................................................................................14
Conclusion.................................................................................................................................................18
References.................................................................................................................................................19

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Introduction
The marketing is the major concept for a big organization as it helps the organization to analyze
the needs of the customers to make decisions for the purpose of satisfying the needs of them.
Marketing is considered as the process by which the company can communicate the value of the
products and services to customers. The main aim of this paper is to analyze the concept of
marketing by taking consideration of McDonald’s Company. McDonald's is the most well-liked
brand in fast food restaurant chain. There are more than 1270 restaurants in the UK in which
around 120,000 employees are working. The major concepts of philosophy will be taken into
consideration to evaluate the concepts of McDonald. McDonald has an extensive range of
products including McCafe, Flurry, McTreat which being the major reason of its likeliness. This
report will be given suggestion in the context of new brand extension in which the potential
target market will be elaborated. The suggestion will be made in the context of increasing the
sales of the new brand strategies.

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Part 1
Philosophy and concepts of marketing
The marketing philosophy and concepts are entirely different of each company in handling issues
within the business. The quality of the products keep major consideration in the growth of the
company but there is some major company that has focused on the more production.
Production concept
Production concept is based on assumptions on which the customer has the option to choose a
product which is cheap and widely available. It reflects the viewpoint of that ‘Supply creates its
own demand’. The outlet of the company spread all over the world in which the revenues of the
company increased due to easy access over the location (Xue, Cheng, Zhang, Wang, Zhang, Qu
and Wang, 2017). This philosophy is used within the business for the purpose of increasing the
demand. Along with advantages, it has disadvantage as well that is not necessary that the
customer every time buy not that much expensive goods and services.
Product concept
The product concept shows the viewpoint of customers in the context of good quality services
instead of focusing on the prices and availableness. The philosophy of McDonald is entirely
different as the main focus of the company is on quality no matter what costs invest in
manufacturing. The budget of the customer can be influenced due to the upper level of quality
and a high price (Xue, Cheng, Zhang, Wang, Zhang, Qu and Wang, 2017). The philosophy of the
product concept is not adopted by McDonald because the quality of the product is not major
factor of the company to the growth of the marketing.

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Sales concept
The concept of production and product has mainly focused on selling products of the company. It
is the concept in which the main motive of the company to advertise the products for the purpose
of increasing sales in the company. This concept is not followed by McDonald as the main
motive of the company is to make a high-quality association with customers for a long period for
the aim of repeating sales.
Marketing concept
Marketing is the concept in which the companies should access the requirements of their
customer first and foremost. The company can make proper decisions for the purpose of
satisfying the needs of the customers in the comparison of the competition. It is the philosophy
that facilitates business to stay in the market for the long term. This philosophy has been adopted
by McDonald as this restaurant has major focused on staying in the perfect competition.
Social Marketing concept
The natural resources should be considered by each company at the time of the production and it
is the belief of this philosophy that the role of the business keeps significant value in the society.
It shows that the involvement of the business in social activity should be necessary as it
facilitates in growing the importance of the company in the view of the outsiders.
Strengths of the organization’s strategy
The strategy of McDonald is efficient in the context of providing value to its ongoing brands and
customers. The company is quite good in making good bonding with the customers for a long
period of time at a lower price with good quality which can be considered as the major strength
for the company. The thinking concept of the company is entirely different from other companies

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for the purpose of making a good image in the view of potential customers (Kottemann,
Plumeyer, and Decker, 2018). There are some strategies for the organization in the form of
strengths is mentioned below:
Brand extension strategy
The main aim of the company is to develop a great value for the customers for which the
company has created Flurry, McCafe and McTreat by taking deliberation of the demands of the
consumers. It has been found that the brand of McDonald develops the various principles for the
consumer that gives excellence products that amplify the magnetism of the customer in the range
of buying products of the company.
Pricing strategy
McDonald's develop the pricing strategy as per their target market because the value of the
currency is varied globally. The value of the products is being determined by McDonald's as per
the income distribution and location which will amplify the attention of the customers towards its
products. The target market of McDonald is not limited up to higher or middle-class people as
the focus of McDonald is in lower middle-class citizens as well (Crawford, 2015).
Employment opportunity
There are so many companies that expanded their business in an effective manner but they are
not sure to hire local people on top authority position of the company. In such a context, the
concept of McDonald is entirely different from other companies as they hire people on top
authority as well as a lower position by considering local people (Martin, 2016). The
environment of McDonald is employee friendly as well as environmentally friendly.

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Importance on local management
The notion of expansion of business of McDonald is based on “think global, act local’ which
highlight the plan of the company and facilitates in achieving a enormous marketplace so that the
sales of the company can be increased. The company contributes to the employment rate of the
country by hiring local people for the management.

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Part 2
Dynamic and trends
Dynamic of fast food industry
The involvement of people in fast food industry is amplified because of attitudes of people
towards accommodating fast food. McDonald has a number of outlets all over the world and the
company should understand the consumer buying performance for reaching growth. It has been
observed that the fast food providers categorized people as per geographic characteristics and
common attitudes for the purpose of providing good quality services to them (Carver, 2011). It
has been analyzed that the amendment in geographic condition is brought favour towards
effective opportunities for development. It has been found in the context of the dynamic of the
fast food industry that there are three dimensions such as sensing capability, learning capability,
and reconfiguration capability. Dynamic capabilities of fast food restaurant such as McDonald is
likely to be vital to the survival of companies in the market considered to be innovative in a hasty
change in the technology.
Market trend of the fast food industry
The choice of customers is changed rapidly due to innovation and they demand new products
and more innovative options every day. The fast-food industry has taken a large place in the food
industry by providing high quality products to the customers.

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Figure: Fast Food Market Trends
Source: (Martin, 2016).
From the above image, it can be depicted that the fast food such as Burgers/Sandwiches,
Chicken, Sea-Food, and Others are covered huge part in the fast food industry and it has been
anticipated that it would cover approx USD 645.0 billion by 2020. The major contribution in
increasing fast-food chain is rapid pace of urban life and employment rate of women which is the
major reason behind the enlargement of the global fast food market (Allegretto, Doussard,
Graham-Squire, Jacobs, Thompson and Thompson, 2013). It has been noted that people have
become aware of good food habits to prevent their health and try to avoid having junk or fast
food for their health.
Pestle of the fast food industry
Political
The factors related to the political are not similar to every country and it is necessary for the fast
food industry to keep the focus on the political regulations such as hygiene, food quality that

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need to comply with food standards. The wage rate in various countries is dependent on the high
or low labor cost and it has been found that the current policies of food push people to buy food
with proper inquiry. For example, it is mandatory for restaurant as per Health Menu Choices Act
to post the number of calories for food and drinks which can impact the customer buying
behavior towards food product. In the context of McDonald, it can be seen that McDonald
mentions all details regarding dietary and calories on their websites which represents a lack of
healthy food choices on their menu (Coric and Vokic, 2009).
Economical
There are various factors related to the economy that impact the food industry. It has been found
that the slow but constant economic enlargement of developed countries is referred to as an
opportunity for McDonald’s to develop and amplify the constancy of the restaurant chain
business. Economic factors can lead the financial instability inside the industry through the
collapse of joblessness rate and upper level of housing cost.
Technological
The role of technology in fast food industry keeps significant value because it helps in
developing food labels, packaging and the production. It has been found that the Newer
Corporation has lack of resources in comparison of the veteran food-based companies.
McDonald has won the marketing strategy by using social media for advertising their products
(Fast Food App, 2012). In the context of the process of marketing, the fast-food industry has
become more aware of describing information about included calories, allergic notices and
promotions.

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Social
The awareness towards health has influenced the entire food industry which includes not only
fast food but also snacks and beverages. There are many countries all over the world that has
major focused on providing high-quality products to the customers. It shows that it is required by
the fast food industry to keep the focus on healthy products (Grundey, 2010). The role of the
culture keeps significant value in the social factor as there are many cultures that do not motivate
the consumption of fast food.
Environmental
The UK has tightened the rules related to the food. It has been found that the targeting children
and waste management are major zones where brands are ready to amend their strategy. The
customer loyalty of fast food restaurant has improved due to a green approach. McDonald is
more focused on providing an approach to recycling and waste management (Financial review,
2014). The regulations related to the food quality have got restricted which being the major cause
to keep the focus on the waste management.
Legal
The focus of many countries is strict towards making rules and laws related to the food
regulations which can influence the food quality and nutrition standards. It is vital for food
restaurants to comply with the legal regulations and along with that compliance, hygiene and
sustainability should be focused by the fast food restaurant (Fujii and Kondo, 2018).

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Extension of New brand
The brand extension strategy of McDonald is quite different because this restaurant works on the
aspect of Think Global Act local strategy that facilitates in giving good quality foods and
employees along with the customer satisfaction (Fulkerson, 2018). “Mc fit food” is a new brand
extension for McDonald as it has been discovered from pestle analysis that the main focus of
people and government is on healthy food. Mc fit food will be established in the USA.
Potential target market
In the context of the potential target market for Mc fit food, the target people will be USA people
who are concerned about their health and those youth who have started gym to reduce weight.
The discussion regarding he opportunities as well as threats are mentioned below:
Opportunities for new brand extension
Mc fit food will be more advantageous for the people of US as it has been found in the survey of
2017 that Americans are more concerned towards healthy food and to be fit for that they had
taken various steps. Mc fit food will be preferred by many people of US as Americans are
internal motivators that drive health habits. It is integral for the new brand extension of
McDonalds to draw attention towards making healthy food for which the company can use air
fryer appliance for deep frying products without oil. This innovative activity will be helpful for
the new brand to initiate a healthy environment within the country (Hollensen, 2010).
Threats for new brand extension
Americans are more confused towards seeing the benefits of which food is healthier for health
and they are struggling to identify which foods are connected with precise benefits. It has been

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evaluated that the fast food industry has suffered a loss due to the introduction of The Food
Safety Modernization Act which bring a massive change in the food system in the country of US.
It would be threat for the new product of McDonald to discover the rule of food and safety law
then execute food structure (Belan, de Macedo, Pereira, Alves and de Araújo, 2018).
Industry analysis
The role of industry analysis is huge in evaluating the factors related to the demand side
strategies and supply-side strategies. The new brand extension should focus on four groups like
demographic, income growth, eating habits and consumers’ attitudes. On the other hand the
factors for the supply-side impact the production of use has been developed into three distinct
levels,
Competitors
It is required by McDonald to focus on its competitors in core way by taking consideration of
their marketing strategy and menu chart for the purpose of bringing better understanding of the
customers towards the choice of food (Jankauskaite, 2016).
Customers
People have become more attentive and conscious in selecting food as they avoid fast food to be
healthy. Mc Fit Food would be a huge opportunity for the restaurant for brand extension and it is
vital for the company to evaluate the ratio for the healthy food eaters before introducing this
strategy in US.

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Figure: the Brand value of fast food restaurant
Source: (Dudovskey, 2016).
New entrants
It has been found that the threat of new entrants is moderate as it would require for new entrants
to invest a large amount which is not possible for new entrants to come at that stage where
already existing and well-known brand remains. Along with that, there is a huge chance for new
restaurants to get succeeded in this industry to adopt differentiation strategy (Martin, Durr, Smith,
Finke and Cherry, 2017).
Part 3
Recommendations
Recommendation on STP

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Mc Fit Food should focus on segmenting according to its customers who can be done by taking
consideration of the age, income and working class. The new brand extension of McDonald
should be introduced in the market of US after evaluating the taste of their people. With respect
to targeting, it is required by the new brand to cover those people who are more focused towards
their health and should entail all income groups which would be helpful in increasing revenues
of the company (Krishnan, Sullivan and Aurand, 2016). It has been found that McDonald has
reached up to a maximum number of borders and cultures and around more than 47 million
customers visit McDonald globally due to a high level of quality products. It is necessary for
McDonald to keep the focus on the designing of the menu for which McDonald should hire an
experienced dietician and healthy food for the people of US can be categorized as per the age of
people. Mc Fit Food should offer quality services to the potential customers and the restaurant
should adopt the local culture and taste of people regarding having food (Jary and Wileman,
2016). Along with that, the price of the recommended food should be packet friendly so that one
can afford it effectively. It is recommended to the restaurant to focus on the cost leadership
strategy for getting the attention of a number of customers towards the services.
Brand building
In the context of the brand building, it has been found that McDonald has around 31,000
locations in 119 countries which become a worldwide recognized brand. This strategy would be
helpful in giving a new identity to the new brand extension to get instant attention from people of
US. It is suggested to the McDonald to focus on the position of the stability of the new product
and put the new characteristics of it into the new brand (Xiao, Yang and Iqbal, 2018). The
company should initiate the new brand extension as per the diet chart facility to get competitive
advantages significantly (Nagle and Müller, 2017). The mission strategy should be formed

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towards Mc Fit Food for the health conscious people in which they can cover up happiness of
healthy people.
Shaping the market offering
It is necessary for the company to keep the focus on the targeted market which should be shaped
by Mc Fit Food in an adequate manner in which the company must focus on the quality product.
McDonald can use the theme for advertisement of this product so that people get attracted
towards it an efficient manner. It is integral for the restaurant to keep the focus on shaping the
market providing outlines in which products must be focused to the market from which the
product is being offered to the potential market (McDonald and Wren, 2012). The food product
should not good only in taste but also in presentation as it increases craving of people to have it.
Along with that, the services should be upper level of the restaurant which could be done by
taking consideration of training to the staff regarding how to manage staff in an appropriate
manner.
It has been analyzed that the offerings should be made according to the demands and
requirements of the customers. Mc Fit Food should focus on ingredient branding and it is vital
for the company to make sure the services and products can be varied in various ways. Employee
satisfaction is vital for the company to increase revenue because it helps out to make satisfy the
customers (Bohari, Hin and Fuad, 2017).
Implementation and control
The strategic objectives of the company can be attained in an effective manner by taking
consideration of the implementation and control of marketing plan strategy (Clark, Bean, Raja,
Loveridge, Freedgood and Hodgson, 2017). The main role of the process is to guide people for

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performing in a more productive manner so that the desired outcomes can be brought. It is the
process that covers all necessary activities and resources to promote the products (Jang, Chung
and Yeo, 2014). The plan for this brand of Mc Fit Food should cover the list in which the core
information regarding responsible person, activities and needed resources should be mentioned.
The company can choose control system as there is a lot of control available in the marketing
plan for controlling the annual plan, control of profitability and control of proficiency (Salojärvi,
Sainio and Tarkiainen, 2010). It has been evaluated that the quality of the product is entirely
dependent on the coordination, organizational structure and motivation and these skills should be
entailed in the management to make good relationship with customers as well as employees.

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Conclusion
It can be concluded from the above discussion that the marketing concept keeps significant value
in making an effective strategy for generating revenues. The report has covered important
information about different philosophies and concept for which McDonald has been considered.
It has been found from the above analysis that the role of the marketing management in brand
extension is huge as it facilitates in amplifying the revenues of the company and help in
developing a good image of the company in the view of the outsiders. Along with that, the report
has covered the brand extension strategy and dynamic trends in the context of McDonald's. The
new brand extension strategy has been developed in which “Mc Fit Food” is being chosen
because it is a healthy and different product for the customer of USA. At last, the
recommendations have been given in the context of segmentation, targeting and positioning in
which it has been found that the new brand should cover those people who are more focused
towards their health and should entail all income groups which would be helpful in increasing
revenues of the company. Along with that the recommendations are given under this assignment.

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