Strategic Marketing Report: McDonald's Campaign Strategies

This report provides a comprehensive analysis of McDonald's strategic marketing initiatives. It begins with an introduction to marketing and market analysis, followed by an examination of the external and internal environments, including competitor and stakeholder analysis. The report outlines a strategic marketing plan, including key objectives like expanding healthy menu options and leveraging digitalization. The campaign strategy encompasses market research, target audience identification, and messaging. Strategic implementation details the marketing mix, RACE model, and roll-out plan. The report also covers budget allocation and key performance indicators (KPIs), culminating in conclusions and recommendations for McDonald's marketing strategies. This report is contributed by a student and available on Desklib.

STRATEGIC MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Market analysis............................................................................................................................3
Competitor analysis.....................................................................................................................5
Macro and micro environment analysis.......................................................................................6
Customer analysis........................................................................................................................8
Stakeholder analysis.....................................................................................................................8
Marketing Campaign...................................................................................................................9
Key strategic marketing objective...............................................................................................9
Campaign strategy.......................................................................................................................9
Strategic implementation...........................................................................................................10
Roll out plan...............................................................................................................................13
Budget........................................................................................................................................14
Key Performance Indicator........................................................................................................14
CONCLUSION AND RECOMMENDATIONS..........................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing refers to a concept that will include creation of awareness regarding company
and its products (Kotler, 2021). Strategic marketing includes formulation of strategies that will
assist the company to be differentiated from others. McDonald's is one of the famous fast food
company of U.S. It was founded on 1940. It has generated a revenue of 19.21 billion U.S. Dollar
in 2020. It is a famous restaurant with an offering of various products. This report will discuss
the concept of marketing and market analysis which act as base for marketing plan. External and
internal environment, competitor, stakeholder analysis are also highlighted in this report.
Strategic marketing plan along with various aspects of objectives, marketing and communication
mix, RACE model, roll out plan, budget and KPI will also be a part of this report.
MAIN BODY
Market analysis
It is one of the essential aspect with regard to every company in which market and its
determinants are analysed in order to frame strategic initiatives and moves for the company. It is
one of the wider term in which detailed analysis of market and its associated aspects are analysed
so that best strategy with respect to company's growth is planned and implemented.
Market size:
It refers to the size of market in terms of its scope. With respect to McDonald's which
belongs to food industry, the size of market is extremely large. This can be understood as the
entire market size of quick food and restaurant industry was around 3.5 trillion U.S. Dollar in
2020. In addition of this, McDonald's is counted as one of the 10 most valuable and quick service
restaurant across the world. Its brand value is 129.3 billion U.S. Dollars.

Source: Brand value of the 10 most valuable quick service restaurant brands worldwide in 2020,
2021.
Likewise, it is also to be noted that the revenue generated by the food industry was
counted as highest revenue across the economy of almost every country. McDonald's itself
contribute a large share of revenue to the concerned economy.
Key trends:
After the covid pandemic the operation of food and restaurant industry got evolved and
changed. This means that now the small business got shut down and only the powerful was able
to survive. As Paul Pomroy also said that due to lock-down as a major crisis there are chances
that the people will forgot the McDonald's. But with inculcating too many changes occurs in
terms of more involvement of digitalization and the take away delivery McDonald's kept
maintain its position. Likewise, its operation in terms of customer dealing also got digitalized (de
Ruyter, Keeling and Ngo, 2018). It started operating virtually. Use of mobile applications and the
online delivery with online payment trend also come into force. These trends enable the
McDonald's not only to meet up the covid changes but the sales percentage also got boost up.
Illustration 1: Brand value of quick service restaurant

Use of smart equipments and involvement of digital technology enable the company to have
better serving its services.
Competitor analysis
Competitor analysis enable the company to have an idea of its existing competitors and
its strategies. This is the base that enable the company to frame its future strategies and plans.
With regard to McDonald's its major competitors may includes:
Source: Fast Food Market Share., 2021
Burger King:
It is one of the biggest competitor of McDonald's. This is because the items of both the
companies are identical with each other. As Burger King is specialize in its burgers and also
offers various similar products too. Both the McDonald's and Burger King are tough competitors
in terms of menu and food items along with its marketing strategies too.
Subway:
It is also one of the successful and growing chain of fast food in US. Like, McDonald's, it
also operates its services in more than 100 other nations (Top Competitors of McDonald's, 2021).
Subway is specialized in sandwiches and salads. It has somewhat created health oriented brand
Illustration 2: Global Fast Food Brands and their share of revenue

image of itself. Along with raising awareness among customer regarding health, it is becoming a
tough competition for McDonald's. This is also because of high calorie's food of McDonald's and
low and health oriented food of Subway.
KFC:
KFC is also an American fast food restaurant with a strong brand image. It is a major
competitor of McDonald's but with a lack of specialization in fries and burgers it does not affect
the McDonald and its sales at extensive percentage. KFC is famous for its fried chickens, which
is made up of secret species. Being not a direct competitor but it is a market leader which may
affect the McDonald's.
Macro and micro environment analysis
Macro environment:
It refers to external environment which has a major impact over the companies and their
moves. It is a major and uncontrollable environment because its factors and their impacts can't be
controlled by any company but with adoption of certain strategies these impacts can be mitigated
at certain extent. It can be performed by McDonald's by adopting:
PESTLE analysis:
Political:
It may include trade agreement, political environment or the rules and regulations of the
concerned country (Perera, 2017). With respect to McDonald's its impact will be moderate. This
is because with the imposition of rules and restrictions regarding food industry and with covid
imposition restrictions the business of McDonald's would be affected. Changing public health
policies may also impact McDonald's but with making compliance of these changes McDonald's
can convert it into opportunities.
Economic:
It includes the economic environment and the economic situation in terms of inflation or
deflation, economic policies and regulations and various other (Shtal and et.al., 2018). With
respect to McDonald's, growth of developed and developing countries may act as opportunity.
However, a slowing of Chinese economy may affect the company and its business.
Social:

Increase in disposable income, more attraction towards fast food industry, busy lifestyle
may all acts as opportunities for McDonald's. Also, a rising trend of healthy lifestyle and heath
consciousness may act as both threat and opportunities for McDonald's.
Technological:
With the involvement of technology in terms of mobile technology, digitalization and
online business trends, McDonald's and its business all got favourable outcome. This can be
understood with its raised sales and profit percentage and more order receiving over mobiles and
digital platform.
Legal:
Raising of health regulations, covid restriction, food and its associated acts may affect the
McDonald's if it will not make compliance with these laws. However, performing business
operations and functions as per required laws and regulations will lead to have better success and
growth to company.
Environment:
With the involvement of sustainability concept, raised interest of corporate environment,
more emphasis on environmental concept may lead to have better opportunities for McDonald's.
This inculcation enables the McDonald's to have better serving and exploration.
Micro environment:
It is a controlled and internal environment of the company. This will enable the
companies to have self-analysation and assessment. McDonald's can perform this analysis as:
SWOT analysis:
Strength:
These are the capabilities of the company which enable them to grab success and growth
(Vlados, 2019). Valuable brand, tasty food, technological advancement, high brand value,
technology acquisitions, compliance and working as per heath protocol, quick service restaurant
are some strength of McDonald's.
Weakness:
Franchisee business model, lower employees satisfaction, interruption in supply chain,
loosing of charm in menu and firing of its CEO Steve Easterbrook has affected the McDonald's
and act as weakness (Mcdonald's SWOT Analysis (2019), 2020).

Opportunities:
These are the future chance which companies may grab by using their strength (Teoli and
An, 2019). Value meals, innovative products, rebuilding of brand image, mobile order and
application are some opportunities which McDonald's can avail in near future.
Threats:
High cost and risk in technological investment, tough competition, cultural threats,
changing trends in fast food consumption, raising health awareness are some threats which may
affect McDonald's and its working. These are need to be mitigated in order to survive in market.
Customer analysis
It can be performed with the implementation of Segmentation, Targeting and Positioning
model in which McDonald's need to make segmentation of market as first step. Generally,
McDonald's make market segmentation on the basis of customer need and preferences, current
trend and other aspect.
After segmentation, targeting the adequate segment is performed. The main targeted segment of
McDonald's includes the young generation and customers. This is because they have more craze
towards fast food and related products.
Lastly positioning enable the McDonald's to have self- analysis of its position in market and
among the customers too. McDonald's has high brand value and market position in case of quick
service restaurant industry.
Stakeholder analysis
Stakeholders are those group of people who have keen interest in company and its
operations. These may affect and also be self-affected by the company.

Source: Stakeholder Analysis., 2020
As per this analysis, McDonald's need to closely manage those stakeholders who have
high interest and power like shareholders, lenders and various other. Likewise, it needs to
maintain level of satisfaction of those stakeholders who have high power and low interest say
customer and government. But in case of those stakeholders like employees who have low power
and interest, McDonald's need to monitor their efforts closely. However, those who have high
interest and low power like suppliers and employees too, McDonald's need to keep in touch and
informed wit them so that its business will not affect.
Marketing Campaign
Key strategic marketing objective
 To involve a range of healthy food items and products in the menu of McDonald's.
 To explore and raise the scope of digitalization in terms of digital payment and digital
services.
 To make more investment and adoption of the practice of sustainability in the coming
future.
 To raise the quality of food and its services.
Campaign strategy
Use of market research:
Illustration 3: Stakeholder analysis

This will act as base that will assist the entire campaign in terms of its success. The
analysis of market also help the McDonald's to frame its future strategic plans and policies.
Reason for campaign:
The major reason behind the launching of this campaign is to grab competitive advantage
to McDonald's. Along with this, it will also enable the company to have better success and wider
market coverage. This campaign will lead to the accomplishment of its strategic marketing
objectives.
Market opportunity:
This campaign will also lead to grabbing of market opportunities in terms of capturing
those customers who prefer healthy food. This will also enable it to capture those opportunities
that arise after Covid pandemic. Raise the number of customers along with sales and revenue
percentage. To meet the changing trends and needs of customers. These are some opportunities
of market which will be grabbed by this campaign. Digital trends and its capturing is also an
opportunity associated with campaign.
Target audience:
The main targeted audience will include young generation people and food lovers which
have fond of tasty food and items. A range of healthy food lovers will also be counted as targeted
audience.
Campaign message:
The main message is to explore market and the opportunities. Grabbing of customers and
become the market player is also a key message of campaign.
Strategic implementation
No success can be grabbed until the made plan will not be implemented. This means that
the implementation of the plan will lead to have actual execution and grabbing of success. This
can be done with the implementation of:
Marketing mix:
It includes various strategies and tactics that will lead to have marketing and sales of the
company's product (Ikechi, Chinenye and Chiyem, 2017). It includes:
Product:

It is the physical product offered to customers (Thabit and Raewf, 2018). Trendy menu of
food, including burgers and other food items, fries, snacks drinks and various others are main
product of McDonald's.
Price:
It is the value of product. McDonald's follows various pricing including value based, cost
plus, and other types of pricing to grab more customers.
Place:
It operates its services at its stores as well as on online platform too wherein it can make
sales of its product as 24*7 basis.
Promotion:
McDonald's uses various promotion channel including social media, public relation,
direct sales, advertisement and many more for its brand promotion.
Communication mix:
This is also a major concept used by McDonald's in which it uses various tools including
social media, digital media, and various other means by which it makes communication with its
audience and customers.
RACE model
It is one of the effective model with regard to building of public relation. Being a
dynamic concept it changes frequently so it is important to have continuous evolution and
monitoring. As per this model:

Source: What is the RACE Framework?., 2021
Reach:
It is the initial and major step in which a company adopt various modes and mediums in
order to reach the prospective customers (Smith, 2020). With respect to McDonald's it uses
social media and related application including Facebook, Instagram and various other. Blogging
and Search Engine Optimization also used by it.
Act:
Here an interaction is made between company and customers with the use of websites
(Colonius and Diederich, 2018). This means that here blogging, content offers and other tools
used by McDonald's to reach and grab the targeted audience.
Convert:
Here the contact become permanent and customer will be ready to buy the company's
product. This stage will lead to have actual sales of products of McDonald's.
Engage:
Here long terms relationship is build between the company and the customers that the
customer become company's advocates (Baltaci, 2021). This will lead to have repeated sales and
raising recommendations to new customer regarding company's products and its benefits.
Illustration 4: RACE Model