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.

Marketing Concept 1
Marketing Concept

Marketing Concept 2
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

Marketing Concept 3
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

Marketing Concept 6
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).

Marketing Concept 12
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