Assignment

On

Course title: Marketing

Course code: SBUS-5002

Submitted By
Mr Arafhat Islam
Student ID: 1204669

Date of Submission: 03/09/2014

School of Business
University of Wales: Trinity Saint David
Table of contents
1

SI

Name of the contents

Title Page
Executive summary
Acknowledgement
Introduction

Page No
1
2
2
3

Analyses of the marketing strategy of McDonald

The Strategic Hierarchy process in McDonald

Competitive Advantages of McDonald

The Marketing Mix

10

Recommendation

11

Conclusion

12

Reference and Bibliography

13

Executive Summary:
The following report has made on reviewing the marketing strategy of McDonalds international
company. The report has made in order to present to the senior management level of the
organization. This report has made on the basis of analyzing the most contemporary marketing

theories and recommendations have made in order to improve the overall performance of the
organization.
Acknowledgment:
First and foremost thanks goes to my course tutor for his kind help and guidance for completing
this report. In fact, my tutors way of explanation the facts, theories with practical examples with
depth analysis of each marketing concept helped me a lot for gaining the competitive knowledge
on marketing and completing this report.
Secondly, I also express my earnest thanks to my friends who shares their own learning and
understanding on each issues and response their views through interactive class presence.
Introduction and background
Marketing is an action of promoting product and service through different means and
communication. In this process of process of promotion, the business organization performs
market research, advertising push and pull selling and other activities. Marketing is a quite old
concept and different academician used the concept of marketing in different aspects as a subject
of business. Bartels (1988) says that marketing is a noun which means buying and selling of
products and services. But in the contemporary time, the concept of marketing is extending to the
new areas of the business process. Wilkie and Moore (2006) say that the definition of the
marketing process is continuously changing over time and in the contemporary time; it is getting
managerial in course of time. In this managerial role of the marketing process, it have different
function in the organization process such as planning as planning and executing conception,
pricing, promotion and also distributing the ideas, goods and service in a way of creating
exchanges and satisfies the organizational objectives. In this process it is also important satisfy
the customer satisfaction in a way of benefiting the organization and the stakeholders.
The marketing process it is important to see a managerial process within the organization for the
marketing of the products and service. In the contemporary times, the marketing process also
includes the improvement of the marketplace efficiency, ensuring distributive justices, and
distributing the product in a very lower price. In this process, Marketing is the activity, set of

institutions, and processes for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large (Lib, 2007).
In the business process, marketing plays a very crucial role for the success in the business
process. In the marketing process, the marketing umbrella provides a solution of the business
through advertising, public relations, promotions and sales. So, in the business process,
marketing provides support in introducing the products and to the potential customer. With the
absence of the marketing process, the potential would hardly able to know the features of the
product and service and there would be a gap between the producer and the customers. So, in the
business process, marketing plays very important role in the organizing process of the business.
Corporate objectives are also very interesting in the marketing strategy of the organization.
McDonald, a leading fast food service provider of the world has a corporate strategy of providing
quality product in good price and also quick service delivery to the customers. In this study, the
nature of the marketing strategy of McDonald will be analyzed and in this marketing process, the
advertising tactics will be analyzed. McDonald is the largest Chain of quick service restaurant of
the world. So the marketing of the organization is very important and it is very interesting to
understand the marketing strategy of McDonald.

Analyses of the marketing strategy of McDonald

To understand the marketing strategy of an organization, it is essential to identify the target
market and the demographic information of the market such as age, income, and ethnicity to
personality, values and attitude of the target people (Horovitz 2014). In the case of McDonald, it
is interesting to see the public responsibility, worker performance, management performance,
market innovation, and the profitability of the organization in the business process.
In the business, it is also important to know about the market competitor and in this process, it is
essential to have some market research so that it is possible to know about the market player.
In the market research, it is also important to have a clear idea about the future trends of the
market and in this process, it is essential to measure the future trends of the market and to take
initiatives according to the market demand of the product.
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From the market research on the marketing plan of McDonald, it is interesting to know that
McDonald is one of the best known brands of the world(Evans, 2004). In this process of creation
of brand identity, McDonald continuously prioritize the customer, listened to them and takes
initiatives to uphold the brand identity of the organization. In this marketing process, McDonald
emphases on the customer needs and requirements and serves the services in the batter way
compared to its customer. In this continuous process of providing batter services, McDonald has
created loyal customer. In this process of providing batter services, McDonald has created
confidence in the market which is very important in the brand creation of the organization.
McDonald has a basic theme in the marketing process of the organization is to find out the
potential customer rather than the serving the customer according to their own choices.
McDonald has some key customers who are in the center of the customer service of the
organization.
In the competitive market of the world, it is essential to provide the competitive advantage to the
customers. Inn this competitive market situations, it is always important to have a proper
marketing strategy so that the organization is able to provide competitive to the customer
compared to their competitors (Mark, 2006). Currently, McDonald is the market leader in the
quick restaurant service in the world because of its service and commitment to the customers.
In the strategic marketing process, the organization divided the customer in two segments such as
the existing customer and the potential customers. The organization have different strategies to
deal with the potential and the existing customer In this process, McDonald provides quality
services to the existing customers and at the same times, McDonald takes different initiatives to
attract the potential customers. In the production process, McDonald maintains high level of
management to maintain hygienic production process, service delivery for the customers. Again,
the competition in the service delivery process is also very important to understand the brand
value creation of McDonald. So, it is very important to maintain quality service so sustain in the
market in maintaining competition.
In this report, we will try to demonstrate the marketing strategy of McDonald through analyzing
the marketing strategy of McDonald. The analyses in be conducted on the basis of internal and
external marketing activities conducted by McDonald. In this process, it will be tried to
demonstrate the marketing strategy through the situational analyses, internal analyses and the
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external analyses of the organizational process. According to Professor Les Worrall (2006), it is
very important to analyze the surrounding in the business process.

The Strategic Hierarchy process in McDonald

In a large organization, they have strategy in different level such as with in the corporate level, in
the business unit level and in the functional and departmental level. In the corporate level, it is
essential to create value within the business. In this process, it is essential to manage the
portfolio, will need to prepare strategy so that the organization sustains for a long term in the
business. The corporate unit of McDonald is highly professional and are playing crucial role in
the preparation of the marketing planning for the organization.
The business unit level also plays a crucial part in the marketing process of the organization. In
this process, it is also important to have a business unit. In this unit, the product and service are
developed so that the organization can ensure batter services to the clients.
Porters Generic Strategies:
The profitability of an organization depends on different issues of an organization such as the
attractiveness of the organization, its position within the industries. Porters says that the position
of an organization depends on the leveraging strength of an organization. He also says that the
strength of an organization depends on the two headings such as the cost advantage of the
organization and the differentiation process of the organization. So, in this process, three generic
results are very important for the success of a firm. So the cost leadership, differentiation and
focus are very important in the generic strategies for the organization.
Target

Advantage

Scope
Board(Industries Wise)

Low Cost
Cost Leadership Strategy

Product Uniqueness
Differentiation Strategy

Narrow?(Market Segment

Focus Strategy

Focus Strategy(Differentiation)

(Low Cost)
Fig: Porters Generic strategies
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McDonald is a market leader in providing fast restaurant service and brought an innovation in
such generic concept development in this sector and that was highly accepted by the people. This
generic development brought the innovation in the market and McDonald become one of the
leading fast restaurant service provider of the world.
PESTE Analysis of McDonald:
In the marketing process, McDonald has wide range of royal customers and they have also
grown up with the McDonald. In the journey of the brand, it has acquired trust of the customer
for its quality service and hygienic initiatives. With the acceptance of the product, people feel
good in using the brand. In course of the time, McDonald has turned into one of the leading
brand of the world.
Political: Due to the health reason there are many legal initiatives has been taken to in the
Europe in tending to control the Fast food business which is a very big concern in the strategic
marketing process of the organization. There are some complexities in franchising process in the
UK and some other countries. So, the marketing manager need to be very much concern
regarding the issues of franchising. It is also important to maintain transparent and good relation
with the government in giving tax and employment process of the organization.
Economical: McDonald is an international brand and it is essential for McDonald to comply
with the international rules and regulations. It is also important for McDonald to comply with the
local market conditions and at the same time, it is also important maintain local supply chain
management. As an international organization, McDonald have to consider the international
market condition in setting economic change of the organization.
Social: In determining the marketing strategies, it is essential to consider the change of the
lifestyle in the different part of the world. In this process, it will be essential for the organization
to bring change within the organization so that the acceptability of the organization increases in
the world.
Technological: To determine the marketing strategies of the organization, it is essential to
consider the technological change in the market. McDonald need to work for the technological

advancement so that it can provide batter services to the customer through the use of modern
technologies.
Environment: As a leading fast food supplier of the world, McDonald will have to consider the
environmental issues in their strategic management process. They will have to develop strategy
to reduce disposal items for the environmental concern. It is also important to be strategic in
reducing the use of Styrofoam materials and plastic cups for the environment concern. It is also
important for the organization to make business in a environmentally responsible way.
Legal: The organization needs to comply with the statutory regulation so that they can challenge
any problem arising within the organization. In this process, the organization needs to protect its
integrity and consumer confidence by using technology and materials so that it is possible to
build trust over people.
Competitive Advantages of McDonald
McDonald sells its product through franchise all over the world. As a market leader of the time,
the organization enjoys some advantage over their competitors. Thus competitive advantage can
be seen as the efficiency, the quality, the innovation, the customer responsiveness etc.
Efficiency: McDonalds maintains highest level of extensive rules and Standard Operating
Procedures (SOPs). In this process, the workers maintain efficiency from the production to the
service delivery process of the organization that helped the organization in the creation of the
brand value of the organization.
Quality: McDonald maintains highest level of quality standards according to the guideline of
SOPs and the use of backward vertical integration. In this process, they ensure regulated cooking
process. They also ensures rigorous check in quality control procedures, monitors its franchisees,
and retains ownership of restaurants and all this ways they maintains the standard of the brand of
the organization.
Innovation: innovation is very important aspect in McDonald as it includes varieties new tastes
menu which is very interesting to the customers. In this innovation process, McDonald has
acquired 156 donatos pizza stores, 700 boston market stores, 100 united kingdom pret a manger

sandwich stores, and 41 united kingdom aroma caf stores which helps the brand in the
expansion process and upholding the brand image in the world.
Customer Responsiveness: McDonald always very concern with the organizational core values
of cleanliness and customer service. In this process, the organization employs multi-domestic
strategy and prepares their products and service in considering the culture of the people and
become very responsive to the customer demands. The organization always prepares the menu
according to the demand of the people and is highly accepted all over the world because of its
multidimensional customer responsiveness.

Fig: Competitors: Wendys ~ Tricon ~ Burger King

Segmentation, Targeting and Positioning Strategy:
The market segmentation is very important in the understanding of the proportion of the market
that is different from the other(Drummond, 2007). In this segmentation process, it helps the
organization to optimize the need for the potential customers.
The market segmentation is very essential for the organization as it provides detail information
about the competitors. The target marketing is also a way of getting attention from the customers.
The target marketing also aims to getting attention in the market.
The market segmentation can be evaluated in different ways such as:

Identifiable: In the marketing, the marketing attributes need to be identifiable so that the
measurement could be identified.
Accessible: In the market, it is also important to have accessible marketing channel so that the
distribution channel is accessible.
Substantial: In the market segmentation process, it is essential to have a strategy so that
themarket needs to be substantially large so that the resource is able to target them.
Measurement and Control: In the marketing process, it is essential to measure the effectiveness
of the marketing process of the organization. In case of McDonald, we will need to see the sale
of the organization, the cost in of the product and the profitability in determining the marketing
strategy of the organization.
The Marketing Mix:
The marketing mix is very crucial for an organization in the strategic level of the marketing of an
organization. The marketing mix will have to focus on four issues such as the product, pricing,
promotion, and placement(Armstrong 2007). In the same time, it is also essential to consider
other relevant issues of customer orientation, input, and accessibility in the fight to the top of the
market. In this point, McDonald is very strategic. In this process, McDonald have targeted
specific group of people and have taken different interventions so that the target of the
organization will be possible to achieve.

Fig: The marketing mix of an organization

The Production: Golden Arches and Ronald McDonald have created amilestones in the
production process of McDonald. These two productswere given in a very low price and quality
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food and it was highly accepted by the people. In the production process, McDonald brought
innovation through providing the food in a very low price and an environment for the children. It
has brought innovation in the marketing process such as inclusion of the breakfast menu,
salads, Chicken McNuggets, and the McLean Deluxe sandwich which was highly accepted by
the people.

The organization made their highest profit through the sale from Chicken

McNuggets and the breakfast menu. So, the innovation in the production process helped the
organization to succeed in the sustainable business process all over the world.
Placement Strategies: McDonald always focuses on the best location for the stores. In this
process of location selection, it was very accessible to the customers that were very convenient
for the customer to choose the product(Armstrong 2007). At the same time, McDonald placed
their business locations in the bus station, railway station which helped the organization to
increase to sell. In the contemporary time, McDonald is trying to localize their product and
services so that people can easy accessibility and this strategy helped the organization to expand
its business.
Pricing: Price is a very essential aspect in the marketing process of the organization. People
always want to see the best possible products for their payments. In this condition, McDonald
brought market innovation through the Low price product and hygienic business environment. In
the fast food restaurant
The promotion of McDonald: McDonald is a largest fast restaurant service provider of the
world. In the penetration process of the brand, it is essential to consider different aspects of
marketing and McDonald is very much concerned in this issues. The organization goes for mass
promotional activities in the market in different segments such as in the print media, electronic
media, billboard etc for the promotional activities of the product. In the penetration of a specific
market McDonald gain some knowledge on the culture of the area and make specific target to
penetrate into the market. McDonald has a core consumer base upon the children, fast food
lovers and the business personnel. In this process, it is essential to understand the marketing
policies of the organization.
Recommendation

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The market is saturated all over the world. So the organization needs to develop an international
strategy so that it can expand in all the big cities of the world especially in the Asian cities. China
can be one of the biggest markets of the product and also other Asian countries.
The brand recognition is also important for the organization and the people are aware of the
brand identity. McDonald has opened McDonald Hotel in Zurich, Switzerland and it is a unique
hotel. People in the other countries also expect such hotel services in different location of the
world and some soft drink products from the organization.
McDonald has the capacity of producing large number of products with maintaining the quality.
So, McDonald can spend money in the research and development section so that varieties
products comes from the brand with the maintaining the quality of the products.
The price of the products of McDonald is comparatively higher than the competitors. Again,
McDonald focuses on the beef menu, Chicken menu but the customer expects some change in
the menu like some fruit items or the vegetarian food menu so that the customer can taste
different in different days. In this process, it can grab large amount of the customer with diverse
menu.
Conclusion: McDonald brought different change in the marketing strategy in different times. As
a result, the brand spread to different part of the world. In the recent times, there are some
alternative in the market and the organization need to review the marketing strategy so that it can
sustain in the market through proper marketing strategy and product innovation and
diversification of the product according the market demand.
Reference and Bibliography:
Armstrong &Kotler (2007), Marketing, An Introduction 8e, Pearson Prentice Hall
Bain P., Fill C. and Page K. (2008), Marketing, Oxford University Press
Clow&Baack (2007), Integrated Advertising, Promotion and Marketing Communications 3e,
Pearson Prentice Hall
Drummond G & Ensor J (2005) Introduction to Marketing Concepts, Elsevier Butterworth
Heinemann
Hoffman K, Douglas et al (2005), Marketing Principles & Best Practice 3e, Thomson Learning
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Housden M (2007), Marketing Research & Information, Butterworth Heinemann

Jobber D 7 Fahy J (2006), Foundations of Marketing, McGraw Hill
Porter, Michael E., (1985) "Competitive Advantage". 1985, Ch. 1, pp 11-15. The Free Press.
New York

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