Strategic Marketing Analysis of McDonald's: Concepts and Strategies

This project provides a comprehensive analysis of McDonald's marketing strategies and concepts. It begins with an introduction to the service sector and the importance of marketing in the food and beverage industry, highlighting McDonald's global presence and franchising model. The project delves into McDonald's marketing concepts, including product strategy, emphasizing localized product development. It then examines marketing strategies, integrating goals, policies, and tactics. The report explores the 7 Ps of McDonald's marketing mix (Product, Price, Place, Promotion, Physical Evidence, People, and Processes) and its STP (Segmentation, Targeting, and Positioning) approach. The project further illustrates how McDonald's adapts its strategies to meet local consumer demands. Finally, the project touches upon the financial and human resource management departments and concludes with recommendations for future growth.

Project

Table of Contents
Introduction......................................................................................................................................2
Main Body.......................................................................................................................................2
A. The marketing concepts and terminologies of Macdonald’s.............................................2
B. Marketing stratezies and all the programmes to ensure the goal attainment of McDonald’s
................................................................................................................................................3
Marketing principles used in the McDonald for daily operations..........................................3
D.Mind map of functional department with the other department.........................................7
Finance department............................................................................................................8
Human Resource Management..........................................................................................8
Recommendation.............................................................................................................................9
Conclusion.......................................................................................................................................9
REFERENCES................................................................................................................................1

Introduction
The main emphasis of todays consumer is on the service sector along with that those
institutions which provides products and services altogether have very large area of market
capturing and widely accepted by all the rages of consumers (Douglas and Craig, 1983). Thus in
favour of food and beverage industry there are many tycoons in the fields which are in the
market lead position and plays a crucial role in determining the effectiveness of the industry by
enhancing the performances and maintaining an efficient working system that enables the
McDonald to attain the respective goals and objectives fort the long period in terms of growth
and profitability. The present assessment is based in the overall dimensions of Macdonald’s. it
is a wide popular quick servicing restaurant that provides snackes, maeals and kind of bevarges
and serve across the globe. The McDonald has adapted the franchising opattertn for its effective
golabal expansion. In the current study the major emphasis is done on its maeketing and the
growth that tis simultaneously relevant with the overll industry’s growth and positioning of the
organsaition as well. The analyses of the key marketing consepts of Macdonald’s its strategy and
terminologies are presented in this report and further the two major principles of marketing
inclusive of 7 P of its marketing mix and segmenting, targeting and positioning techniques to do
the marketing for the restaurant chain. The functions and theirs relationships with all the
operational department in the company are well presented in the poster and
Main Body
A. The marketing concepts and terminologies of Macdonald’s
The major implementation in the structures and marketing functions of Macdonald’s are
determined by the concepts and its inherent tools of practices.
Product Stratezy
The products if the company are widely popular all over the world but instead of staging the
items at rigid ranges throughout the globe McDonald’s provide distinctive products according to
the most appropriate preferences of a respective region and location. The products are well
established in the market and most of them don’t have any substitute in the near competition.
The widely selling items of McDonald’s in the United Kingdom are mainly Big Macs, Fries,
McDouble, Egg McMuffin, Sausage biscuit, Chicken nuggets, McChicken, Fish o’Filet, Hash
browns, Bacon Egg & Cheese biscuit. As McDonald's has expanded internationally, it has

created several products to meet consumer demand in the local markets, the McDonald is using
the Local Product Development Strategy. In the Netherlands, for example, they have developed
the McKroket, a burger featuring a typically Dutch crochet, a deep-fried, ragout-filled patty. In
the Canadian province of Quebec, McDonald's offers routine, a traditional dish of fries, gravy
and curd cheese. Even in parts of New England and Atlantic Canada, they have developed the
McLobster, their version of the local lobster roll sandwich. This strategy ensures that local
customers have foods to fit their tastes.
Promotion Stratezy
The advertising objective of the company, simply put is to make the consumers aware of an item,
like it and remember it (Tendean, Mananeke, and Roring, 2020.). McDonalds have till date,
successfully conquered most of their markets with a wide rand of products, but the Big Mac has
created an entirely different era in the sales for the company. McDonalds follows five different
promotion strategies for almost all their products including The Big Mac, being altered for
different markets
B. Marketing strategies and all the programmes to ensure the goal attainment of McDonald’s
A marketing strategy often integrates an McDonald's marketing goals, policies, and
action sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy ,
which might include advertising, channel (marketing)|channel marketing, internet marketing,
promotion (marketing)|promotion and public relations can be orchestrated. Many companies
cascade a strategy throughout the confines of McDonald's, by creating strategy tactics that then
become strategy goals for the next level or group. Each one group is expected to take that
strategy goal and develop a set of tactics to achieve that goal (Morrell, 2020). This is why it is
important to make each strategy goal measurable. McDonald’s competitors include
Wendy’s/Arby’s, Burger King, Subway, and Yum! Brands among others. Some of these
competitors do not focus on the entire market segment as McDonald’s does. For instance, Burger
King has been targeting adults of 18 years to 35 years old, as Wendy’s/Arby’s target consumers
of 24 to 49 years, instead of its previous strategy of targeting 18 to 24 years consumers. In
addition, most of these competitors’ target markets have limits in terms of geographical
coverage.

Marketing principles used in the McDonald for daily operations.
The core principles on which the whole McDonalds formulates the planning and execute the
major to all the operations First and foremost, the main objectives of the market strategy must be
to recognize whether target clients are pleased with the service and products provided by the
company (O’Neill, 2020) Study indicated that little ones were great influencers in the company’s
decision and making process. This led in the world’s first Happy Meal, a combination of meal
suitable for children including a free toy which place McDonalds smack-dab in the children sites
all over the world. The main principles within the confines of MacDonald are its marketing mix
comprising of all the 7 Ps of the company and along with that the STP method.
The marketing mix strategy is comprised of the 7 major principles that is described as
follows.
Products
McDonald’s is one of the world’s leading fast food restaurants. It primarily sells
breakfast, burgers, fries, chicken & sandwiches, snacks & sides, desserts & shakes, salads, and
drinks. It provides customers with a variety of options. For example, Egg McMuffin, Egg White
Delight McMuffin, Hotcakes, Hash Browns, Quarter Pounder with Cheese, Double Quarter
Pounder with Cheese, Hamburger, Cheeseburger, Double Cheeseburger, Vanilla Shake, Vanilla
Cone, Hot Fudge Sundae, Kiddie Cone, Hot Caramel Sundae, Strawberry Sundae, Baked Apple
Pie, McCafé Chocolate Shake, McCafé, and McCafé Frappé Mocha are some of the products
offered by McDonald’s.
Prise
Companies use a wide range of pricing techniques to sell their products. Value pricing, going
rate, cost plus pricing, price discrimination, and loss leader are some of the popular pricing
techniques (Kim and Kim, 2020). The overall aim for each individual McDonald’s restaurant is
to provide food at a competitive value driven price for the customers. Prices vary slightly
between different McDonald’s restaurants according to a number of factors. The restaurant set
prices with a demand-based methodology and does not prescribe pricing to franchisees who can
set their own price structure as they see fit in their local market (McDonald’s, 2020). However,
franchisees need to offer a competitive value driven price for their customers.
Place

Place refers to distribution. Distribution strategies are the ways in which a company gets its
products to its customers. McDonald’s have different distributions strategies in different
countries. The restaurant offers home delivery in some countries; however, this service is not
available in many countries (Ferrell and Ferrell, 2020). For instance, McDelivery is now
available in many cities in the UK
Many of the McDonald’s restaurants are open 24 hour a day. This is an example of intensive
distribution which means making products available for sale through all possible channels of
distribution. This helps the restaurant increase its sales and eventually the total revenues.
Promotion
McDonald’s advertisements are the most notable among its promotion tactics. The restaurant
uses television, newspapers, magazines, the Internet and other media outlets to communicate
with its customers. The company uses ‘sales promotion – techniques of sales promotion’ as well.
For example, if customers buy six cups of tea/coffee and collect six stickers, they become
eligible to have a cup of tea/coffee free. The restaurant also offers discount coupons and freebies
for certain products.
Physical
The last element of the marketing mix of McDonald’s is physical evidence which refers to the
elements of the physical environment visitors and customers experience. The physical evidence
impacts not only on the impressions of the customers of the restaurant, but also the way
McDonald’s functions. McDonald’s interiors are attractive and the restaurant maintains clean
and hygienic interiors of its outlets.
People
McDonalds is one of the biggest employers both in the USA and the UK. Approximately
120,000 people work in McDonald’s in the UK and Northern Ireland. 70% of McDonald’s
restaurants in the UK are owned and operated by local businessmen and women. The restaurant
invests £43 million on employee training and development every year in the UK. The main
objective in the discussion of People aspect of the marketing mix is to address issues concerning
both customers and employees. If employees are not happy, they are more likely to deliver poor
customer service. This may frustrate customers who may never come back again. It is therefore
very important for any company to devise appropriate strategies to address the needs and wants
of both employees and customers.

Processes
Process refers to a set of activities performed in order to achieve something. McDonald’s
undertakes a number of activities to deliver its products to customers. For example, food
preparation is an important activity in the overall process. The food preparation at McDonald’s is
completely transparent i.e. the whole process is visible to the customers. Other aspects of the
process include but not limited to how customers place their orders, how long they wait for their
food, and how they are treated by the customer care assistants.
The STP technique is also implemented by McDonald’s through the woprld wide selling
spaces. Thus the segmentation, targeting and positioning is presented as below :-
Segmentation
It is the dividing of a populations into groups according to certain characteristics. McDonalds
incorporates the segmentations in different types are as Geographical; region, density,
Demographical; age, gender, life-cycle stage, income, occupation, Behavioural; degrees of
loyalty, benefits sought, personality, user status, Psychographic; social class, lifestyle. Mc
Donald’ has been a great escape for children after the school, on weekends and in holidays, it
offers the children with great features like “Happy meals” that are served with favourite toys of
children, the organization had even built playgrounds for kids in the restaurants (Narula and
Mishra, 2020). Countries like Germany, Europe and Japan where the adult’s population to
attract the adults into business, Mc Donald’s even sell a draft beer as part of drinks with their
food.
Targeting
After the segmentation, the company needs to decide on the Targeting strategy.
Companies need to select the market segments that they want to focus on and put in their future
business strategy. The marketer faces a number of important decisions, How many markets to
enter Mc Donald’ is a fun fulfilled environment place that targets Children with Happy meals,
youngsters with free WIFI. MC Donald’s all day breakfast has been on the menu for a long time
is has started newly in Australia and New Zealand to serve breakfast lovers during the whole
day. Mc Donald’ is a fun fulfilled environment place that targets Children with Happy meals,
youngsters with free WIFI. MC Donald’s all day breakfast has been on the menu for a long time
is has started newly in Australia and New Zealand to serve breakfast lovers during the whole
day.

Positioning
Mc Donald’s is fighting to position its brand against its rivals around the globe, the rivals Mc
Donald’s are KFC, BURGER KING. The Mascot of Ronald Mc Donald had a great attraction for
children that had children driving to the restaurants. Mc Donald’s has used advertising through
social media and billboards as their mainstream to position its brand against its rivals (Das,
McNeil, Pouder and Daly, 2020). On finalizing the market segments that the company wants to
target, the marketer’s next step is to design a marketing program (also known as the marketing
mix) that will resonate with the target market or markets. In-depth knowledge of the key market
segment’s like their buying behaviour, their likes, spending patterns, purchase drivers, media
habits, etc are required before devising the marketing strategy or programs. Developing
customers personas is one step that marketers follow while creating profiles for customers in
their target market segment. sing these insights, McDonald’s create a positioning profile for
every product and then the creative team uses these profiles to create ads targeted to relevant
segments as well as to the general population.
D.Mind map of functional department with the other department
Marketing is a strategic discipline which underpins most activities of the business and is an
essential ingredient of corporate strategy as communicated in the corporate plan. What is
important, therefore, is that the product meets customers' needs (Kumar Phookan, and Sarmah,
B., 2020 ). Although the marketing function is normally carried out by a specialised department,
marketing thinking must permeate the entire McDonald Developing an effective marketing plan
will require close links with other functional areas of the business.
The nature of departmental/functional McDonalds, means it is likely that there is the
potential for conflict between functional areas when delivering the corporate plan. all business
functions should interact harmoniously to pursue the firm overall objectives. In practice,
however, interdepartmental relations are often characterized by deep rivalries and distrust. Some
conflict stems from differences of opinion as to what is in the company best interests, some from
real trade offs between departmental well-being and company well-being, and some from
unfortunate stereotypes and prejudices.

In the typical organization, each business function has a potential impact on customer
satisfaction. Under the marketing concept, all departments need to rethink and work together to
satisfy customer needs and expectations. The marketing department must drive this point home.
The marketing Vice President (VP) or CMO has two tasks: (1) to coordinate the internal
marketing activities and (2) to coordinate marketing with finance, operations, and other company
functions to serve the customer (Sarika Devi, 2020).
Operations and production
What is important, therefore, is that the product meets customers' needs. Although the
marketing function is normally carried out by a specialised department, marketing thinking must
permeate the entire McDonald Developing an effective marketing plan will require close links
with other functional areas of the business.
The nature of departmental/functional McDonalds, means it is likely that there is the potential for
conflict between functional areas when delivering the corporate plan.
Finance department
The marketing department will need to work closely with the finance department to ensure
that:
There is an adequate budget to meet the needs for research, promotion and distributionThe
finance department have a complete McDonald brief to ensure that all the business operates
within its financial capabilities. They will want all departments to work within their allocated
budgets. Like all departments, marketing may wish to overspend if profitable marketing
opportunities emerge over the year (Pegan, Vianelli and de Luca, 2020). The marketing
department is likely to concentrate on sales volume and building market share, while the finance
department may be more focused on cash flow, covering costs and paying back investment as
quickly as possible.

Human Resource Management
The marketing department will need to work closely with the HRM to ensure that appropriate
skills and staffing levels are in place to research and develop new product ideas
 Meet production targets
 Create an ambitious and competent sales team
The HRM department will have many recruitment and training demands from across the
McDonald It will have to balance its obligations to marketing with those to other departments.
Recommendation
The best solution is for marketing to periodically propose a function-to-function meeting
with departments where greater understanding and collaboration is warranted. Even if each
function indulges in stereotypical charges and complaints about the other, such a meeting can
lead to a clearing of the air and a basis for a more constructive collaboration. Each department
needs to understand the operating logic of the other departments. When departments work
together toward common goals, marketing is more effective. McDonald’s can implement an
integrated promotion mix that has a balance of both traditional and modern digital media for
brand promotions (Tamilia Ferrell. and Hopkins, 2020). McDonald’s must recognize the
importance of digital media in the promotional mix for organizations, and should devise digital
marketing strategies to engage with the online customer base. McDonald’s needs to focus on
service differentiation strategy in order to position the restaurant as a superior service restaurant
in the minds of the target consumers. The service differentiation strategy implies that
McDonald’s shall offer superior services at each step of the customer touch points right from the
placement of order through the delivery of the products.
Conclusion
The information that is analysed in the report states that the company could also look into
expanding more aggressively abroad where the prospects for significant growth are greater. The
company’s environment efforts, while important, should not overshadow its marketing
initiatives, which are what the company is all about. Once the marketing strategy is in place,

various responsibilities are given to different individuals so that the plan can be implemented.
Systems are put in place to obtain market feedback which measure success against short-term
targets. McDonald’s has to ensure that this is done within the confines of a tightly controlled,
finite marketing budget.

REFERENCES
Books and Journals
Douglas, S.P. and Craig, C.S., 1983. International marketing research (p. 192). Englewood
Cliffs, NJ: Prentice-Hall.
Tendean, M.R., Mananeke, L. and Roring, F., 2020. PENGARUH VIRAL MARKETING,
STORE LOCATION DAN FOOD QUALITY TERHADAP KEPUTUSAN
PEMBELIAN DI MCDONALD’S MANADO. Jurnal EMBA: Jurnal Riset Ekonomi,
Manajemen, Bisnis dan Akuntansi, 8(1).
Morrell, K., 2020. How many McDonald’s are there? anti-union activity and global franchise
operations.
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Consumer Satisfaction At Mcdonald's (Survey of Consumers Visiting Mcdonald's City of
Bandung).
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middle classes underground. Environment and Planning A: Economy and Space,
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Amin, M.Y., Suharno, S. and ZA, S.Z., 2020. Pengaruh brand awareness dan kualitas pelayanan
terhadap keputusan beli mcdonald's di samarinda central plaza. Jurnal Ilmu Manajemen
Mulawarman (JIMM), 4(1).
Narula, M.P.K. and Mishra, V.P., 2020. Affect of Green Marketing on Consumers (With Special
Reference to Bhuj). Studies in Indian Place Names, 40(50), pp.2113-2129.
Pegan, G., Vianelli, D. and de Luca, P., 2020. Country of Origin and International Contractual
Marketing Channels: Evidence from Specific Product–Market Perspectives.
In International Marketing Strategy (pp. 75-95). Springer, Cham.