Marketing and Management Analysis: McDonald's New McBurger Strategy

This report provides a comprehensive analysis of McDonald's marketing strategy, focusing on the relaunch of a new, healthy McBurger. It begins with an executive summary and introduction, followed by a mission and vision statement. A situational analysis, including PEST and SWOT analyses, assesses the external and internal environments. The report then delves into marketing strategies, including market segmentation, targeting, and positioning. It examines the marketing mix (product, price, promotion, and place) in detail, with a focus on communication channels and branding. Recommendations are provided to enhance the marketing plan, and the report concludes with a summary of key findings. The analysis highlights the importance of adapting marketing strategies to meet changing consumer preferences and maintain a competitive edge in the fast-food industry.

Running head: MARKETING AND MANAGEMNET
MARKETING AND MANAGEMNET
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Executive Summary:
The report highlights the importance of marketing strategies while launching or re-
launching of a new products in the market. In the light of the given company, McDonalds the
marketing strategy has been evaluated. The existing market position of the organization has been
identified to know the marketing strategy for the new products. The 4P’s model has also been
evaluated to decide the marketing strategy for the new products. With the help Of SWOT and
PEST analysis the present market environment is also known. The new McBurger has been re-
launched in the market that is totally healthy. The communication mix strategy helped in the
promotion of the new burger to make the customer aware about the new innovative product. The
reports therefore conclude the marketing plan for the introduction of new product in the market.

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Table of Contents
Introduction:....................................................................................................................................3
Mission & Vision statement:.......................................................................................................3
Situational Analysis:........................................................................................................................3
PEST Analysis:................................................................................................................................4
SWOT Analysis:..........................................................................................................................5
Marketing Strategy:.........................................................................................................................6
Market segmentation...................................................................................................................7
Target market segment strategy:..................................................................................................7
Market Needs:..............................................................................................................................8
Positioning strategy:....................................................................................................................8
Marketing Mix of McDonalds:........................................................................................................9
Product:........................................................................................................................................9
Price:............................................................................................................................................9
Promotion:.................................................................................................................................10
Place:..........................................................................................................................................10
Communication channels:.........................................................................................................10
Branding strategy:..........................................................................................................................11
Recommendations:........................................................................................................................11
Conclusion:....................................................................................................................................12

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References:....................................................................................................................................13

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Introduction:
McDonalds is one of the leading fast food restaurants that serve around 3, 50,000
restaurants in over 120 countries all over the world. The company was initially founded in the
United States in the year1940. It provides food items like sandwiches, chicken, fries, burger and
soft drinks items and smoothies. The main motto of the organization is to provide high and best
quality of products and services to their customers by providing best services to attract and retain
their customer (Basu, 2014). The report will highlight the re-launch of its product to attract and
retain their potential target customers. Providing value to their customers will help in
maintaining and creating an effective relationship between the McDonald and their target
customers. This ultimately will provide benefit to the McDonald by creating goodwill in the
market.
Mission & Vision statement:
Mission: the brand mission is to make their restaurant, favorite place of their customers
to eat and dine. The firm is committed to continuously improve their operational activities and
enhance the experiences of their customers.
 Vision: the main vision of the company is to provide the world class best and quick
services to their restaurants (Mcdonalds.com, 2018). .
Situational Analysis:
McDonalds is known to be the market leader in the fast food industry. The launching of
the new product is very beneficial for expanding the business and attracting the potential
customers. The organization plans to re-launch the burger with whole grain wheat and more

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healthy items would be added to the new menu. One of the vital components of the marketing
strategy of McDonalds includes segmentation, targeting and positioning. The firm has initiated
sustenance’s quality purposes for progressing, enthusiasm and arranging purposes.
PEST Analysis:
Political  The government has raised the GST
rate for the service industry.
 Changes in the rules and policies affect
the sale of the company.
 The [political instability within the
country can affect the growth of
McDonalds products.
Economic  Increased in the interest rates and
exchange rates can affect the risk of
currency.
 Increasing labor cost and material
prices can affect the growth of the
organization.
Social  Consumer are getting more committed
towards the brand value
 Changes in the lifestyle of the people

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affect the growth of the organization.
Technological  Through the social networking sites and
mobile apps, the customer can do the
shopping immediately
(Mcdonalds.com, 2018).
 Innovation will further help the
company to reach maximum profit.
SWOT Analysis:
Through SWOT analysis McDonalds would be able to finds its position in the market.
With the help of marketing analysis, the current situations present in the market can be easily
determined. It helps the firm to determine its major strengths over its competitors and its
weaknesses. The threats that the company usually faces is also ascertained (Phadermrod,
Crowder & Wills, 2016).
Strengths: McDonalds has a worldwide presence in the market that creates a brand values
and huge impact on the brand values being a market leader in the global market, launching of a
new product with good quality and at reasonable price makes it beneficial for the new products
that can be easily launched. The company is facing long-term economic growth that acts as a
major advantage for the organization to get expanded. One of the major strengths of McDonalds
is the customer’s loyalty. The loyal customers always prefer to eat only in McDonalds, which is
one of the vital strengths of the organization.

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Weaknesses: the saturation of the business market of McDonalds has made it really
difficult for the firm to expand its market. The threat of competitors in the market is also a
weakness for the organization to exceed in the business market. The healthy food items help the
people in creating a brand new customer segment. The food items come in various categories
that are used to attract and introduce more customers (Homburg, Jozić & Kuehnl, 2017).
Opportunities: McDonalds helps in adding innovating and new services as well as food
items in the food menu to improve the outlet chains and attract the potential customers. The
healthy food items such as the new McBurger makes the people to be health conscious by
creating brand new customer segments. The new food items comes in the category of healthy
food items that helps in attracting and introducing more customers. McDonalds also have huge
opportunities to reach to its potential customers by expanding its global presence in the market.
Threats: in the recent times, people are getting more and more health conscious and do
not like to eat all the fast food items. If such awareness spreads out more among the people, it
would surely affect the company’s profit, which is also major threat for the organization.
Moreover, the fluctuations in the foreign currency rates also become the major threat for the
organization.
Marketing Strategy:
The main strategy is to serve the market well. The first outlet re-launching the product
will be used as market tester. It could become a model for expansion of the business in the near
future. the combination of local store marketing program and media will be used at each and
every location , location store marketing of the product would be more advantageous as it would
help in expanding the number of outlets in future through its strong identity in the local market

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(Klang & Hacklin, 2013). The combination of local store marketing programs and media would
be used at each of the location. The execution of the strategy would prove to be very effective
that would be helpful in establishing the market and exploring the broader target market.
Market segmentation
While re-launching the new healthy products, Mac Donald’s uses demographic
segmentation strategy. The main target segments are youth, children and urban family. Children
are generally taken into consideration and attracted towards delicious meals and toys. Young
people generally this place for gaining entertainment. The young family members select
McDonalds on various occasions such as birthday parties so that they can treat their children.
Geographic segmentation: the division system of McDonalds includes all the major
metropolitan and urban market. The business aims to provide proper nourishment and healthy
food items to its potential target.
Demographical: the demographical segments of McDonalds are usually separated
through the financial class and ongoing parameters. The previous methods of McDonalds was to
differentiate the market segment on the basis of age but later on income level were used to
differentiate the potential customers. McDonalds is currently focusing in all family by offerings
like ‘family supper’ and ‘happy meal’.
Psychographic: the youngsters visit the place with their families for a treat. The kids
often need to visit McDonalds as they find the place very entrainment and fun spot. The business
clients also visit the places as the services are real quick.

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Target market segment strategy:
The new McBurger intends to satisfy the needs of youngsters and teenagers in United
States. The goal for the organization is to be a ‘unique fast food place’. The age-group 15 to 25 is
the primary target market for creating the brand of the products (Qureshi and Hassan, 2013). The
target market groups are having a very limited income and seek a price/value relationship that
would not affect their budgets. The secondary target market group fir the product is the
individuals between the age group of 25 and 37. They are generally flexible in budgets and seek
more value price relationship.
The launch strategy of McBurger is a dual purposed technique. The foremost idea is to
feature McBurger is to satisfy the people cravings for fast foods that could be eaten for lunch.
McBurger would be made of whole of whole grain wheat and healthy vegetables. This can be
used as a quick bite and not as a heavy meal. The next strategy is to keep the price rate very fair
and reasonable for the potential customers. The price should be similar to the other competitors
in the market such as KFC.
Market Needs:
The target groups want flavors and Variety in their foods besides an entertaining and fun
experience. They insist upon a friendly, clean and attractive environment. The customer wants
speed of service besides having an active lifestyle. The target customer’s comes from different
ethnic backgrounds and adopts a global lifestyle. The needs of the target market generally look
for quick and speedy services (Men, 2014). This is caused due to the rising income and
increasing younger demographics throughout U.S. The lifestyle changes of the people are often
influencing the consumer foods, purchases as well as entertainment choices. The change that

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takes places includes a high professional class that involves more working women. This leads to
increase in the disposable income of the country.
Positioning strategy:
The positioning strategy of McDonald can be ascertained with the help of marketing mix
that is highly suitable for the target customer segment. McDonalds uses various types of products
positioning and works accordingly. The organization is also engaged in the periodical
positioning and re-positioning of services and products according to the changes in the segments.
Marketing Mix of McDonalds:
The marketing mix of the organization helps in forming the core marketing system that
helps in achieving the objectives of the company. The major 4p’s that is to be considered while
re-launching of the new products and services includes are as follows:
Product: the new menu is developed as per the liking of the customers, the market
research helps in knowing exactly the wants of the customers. Although the likings and demands
of the customers often changes with time (Todorova, 2015). McDonalds re-launch its new burger
and discard the old products with the help of market research. McDonalds take care of the new
products so that does not affect the total sales. McDonalds clearly understands that different
people will with different demands affects the profit cycle of the business. Therefore, innovation
is essential to survive in the existing competitive market.
Price: the price of the new product should be designed in such a way so that the people
can easily accept its worth. If the prices of the product are kept too low, then the customers may
have several queries relating to the price and quality of the products. On the other hand, if the
price of the new burger is too high then the products worth can be questioned. The new

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McBurger will help in satisfying the needs of the target customers. It is flavored with special
seasoning and healthy in nature. McBurger will also be included in the affordable products that
are branded. It is for all those people who like to eat organic foods. The potential customers are
those who prefer to have health conscious food quality and taste in their food and willing to pay
for it.
Promotion: it is the most vital element while making the marketing strategy. For
launching or re-launching of a product, it is necessary to create awareness about the new product.
The promotion technique for the product is also known as the marketing communications.
McDonalds can uses several advertizing medium that includes TV, radio, print and online
medias. The various other promotional methods may include loyalty scheme, merchandising,
discount coupons, door drops and direct mail. The promotional activity for has major aim to
provide effective exposure for the new item (Dessart, Veloutsou & Morgan-Thomas, 2015). For,
McBurger also the similar promotional activities will be used by providing maximum exposure
to the product.
Place: the place includes the overall processes of the management and the compete
process of bringing the end products to the final customers. The present outlets of McDonalds
are evenly spread, which makes its easily accessible to the potential customers. The latest drive-
in and drive- through options also increases the customer’s convenience.
The marketing mix includes the diversified accesses that are used in meeting the various
business concerns that is used in the global market.

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Communication channels:
McDonalds has a very high international presence that allows it target the potential
customers on the international level. The company spends generally a huge amount for the
promotion of its brand .the promotion channels for the launch of McBurger is decided as per the
target customer segments. For attracting the teenagers and youngsters, social media will be used.
While for targeting the adults and children, television will be used
Advertizing: the company spends maximum budget for advertizing into media and print
advertizing. The company is unable to attain maximum advantages to get the maximum return of
interest through advertizing it with the media and print (O’Barr, 2015). Through advertizing of
McBurger that is very healthy and tasty will help the organization in achieving the targeted
profits.
Sales promotion: McDonald’s uses another most popular process for communication is
through sales promotion. Sales promoting idea is done through providing free breakfasts by
allowing the nominated lucky customers.
Branding strategy:
The two vital reasons to gain maximum profits are right segmentation and
experimentation. The diver’s customer’s base of McDonalds enables it to adapt itself as per the
marketing and advertizing campaigns according to the culture of the country. In the present era,
the brand value of the products can be easily measured for which, the organization is ranked to
be one of the most valuable brand (Agmon and Sjogren, 2010). The continuous innovation and
experimentation have led McDonalds to become one of the major iconic or unique items. The

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company is re-launching healthier product to respond to the several problems such as obesity and
various reasons.
Recommendations:
 McDonalds need to lay more emphasis on service differentiation strategy so that it can
position the restaurant as the best services in the mind of the target customers.
 McDonald should implement an effective promotion mix strategy that can have balance
between the modern digital and technological media for the brand promotion. McDonald
should focus on the importance of digital media by deciding digital marketing strategies
to link with the online customers.
 It is recommended that McDonalds should continue to invest more in menu
customization and standardization strategies. This strategy helps in connecting and
attracting the target customers in the geographical market (Reeves 2014).
 McDonalds should also engage more in using fresh ingredients in its products. The
product quality can further be enhanced by using more healthy and fresh ingredients.
Conclusion:
McDonalds is a well-known brand all over the world with more than 30,000 outlets.
While re-launching the existing product, the company easily faces competition and therefore
works by bringing innovativeness in its products and services. This helped the organization to
easily attract and retain its potential customer and gain competitive advantage. The company has
bought new burger, known a McBurger for the segment that are health conscious and does not
prefer having fast-food. McDonalds aims the health conscious individuals. Therefore the burger
is completely healthy as is made of organic product. For re-launching of the products, the

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organization has undertaken SWOT and PEST analysis and the current position of the market are
identified. This helped the firm to further determine its goal regarding the sales volume, market
and profit share of the firm. The 4p’s model is applied by McDonalds to ascertain the marketing
strategy for the new products.
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