CHAPTER 1.

MARKETING STRATEGY

1.1 Introduction to Marketing Strategy

Marketing strategy is very much important for developing

any of the business. Without it, the effort of the business to attract
customer is random and very inefficient. The main focus of your
strategy must make sure that your product should fulfill the demands of
the customers and as well as it maintains the long term relationship
with those customers. To achieve this, you will have to initiate flexible
strategy that responds to change in customer demand and perception. It
may also give brand name to your product which will help you to run
your business in new markets smooth and efficient manner. First of all
the main purpose of your marketing strategy should be to identify
whether the target customers are satisfied with your product and
services of your business.

Once you have created and implemented your strategy, try

to identify the feed from your customer and if any changes or
improvement is required apply it for the maximum satisfaction of
customers.

This helps you to identify that, where your strategy needs

to be improved and how it can be developed, so that it can be
implemented for effective action. Before applying any strategy in the
business proper planning programs must be organized within the
members of the organization.

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1.2 What is Marketing?

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.

satisfaction of needs & wants

needs and wants through ideas, products and services

From the above definition we are able to understand that a

successful marketing deals with satisfaction of both the parties. The
definition basically explains that there is a simple process i.e. is selling
something to somebody however, the definition conveys that an
exchange of goods and services without any barter system and having
common currencies, that exchange is called a sale. So while achieving
the goals of marketing by selling, it is not compulsory that both the
parties should be agreed upon the transactions. Satisfaction of both the
parties is a hided in an exchange relationship. Marketing must
understand the product, ideas and services along with Needs &
Wants of the consumers.

Marketing must not only understand this equation but also

establish the policy to maintain balance between both the sides, by
implementing marketing strategy.

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1.3 Meaning of Marketing Strategy:

A marketing strategy defines and describes the objectives

or planning through which you are going to satisfy our consumer needs
in the selected target market. It does not involve written work but, it
includes communication between two departments of the business
enterprise. For example: sales department, managers, executives etc.

In fact it is a set of strategies that implied by the

organization in order to increase the growth and development of the
business. Normally strategy deals with the manner in which your
organization plan to achieve the customer satisfaction and maximize
the profit.

1.4 Definition of Marketing Strategy:

o Marketing Strategy is a set of specific ideas and actions that outline

and guide decisions on the best or chosen way to create, distribute,
promote, and a price a product or service (manage the marketing
mix variables).

A marketing strategy is a process than allow an

organization to concentrate its limited resources on the greatest
opportunities to increase sales and achieve a sustainable competitive
advantage.

A marketing strategy should be centered on the key concept

that customer satisfaction is the main goal.

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 Business Advantages:
1. Identifies needs and wants of the consumers
2. Determines demand for a product
3. Aids in design of product that fulfills consumer needs
4. Outline measures for generating the cash for daily operation, to
repay debts and to turn a profit
5. Identifies competitors and analyze for products or your firms
competitive advantage and new product areas
6. Identifies new and/or potential customers
7. Allows for test to see if strategies are giving the desired results

Business Disadvantages:
1. Identifies weaknesses in your business skills and overall business
plan
2. Ideas to faulty marketing decisions based on improperly analyzed
data

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CHAPTER 2. ABOUT MCDONALDS

2.1 History of McDonalds:

The story of McDonalds was
started in 1940, as a fast food
restaurant by two brothers named
Richard and Maurice McDonald in
San Bernardino, California, US.

The name of restaurant

was
McDonalds Hamburgers, by mid-1950s their restaurant revenue had
reached $350000. Raymond Kroc, the distributor of milk shake
machines expressed interest in their business and finalized the deal for
franchising with both the brothers. He established a franchising
company called McDonald system incorporation. In 1955 he became
the founder of McDonalds and bought out of the McDonald brothers
share for $2.7 million and changed the name of the company to
McDonalds Corporation.

Kroc proved himself as a pioneer who revolutionized the

American restaurant industry. Today McDonalds is the California
worlds largest food chain serving 47 million customers daily.
McDonalds is now one of the most valuable brands globally, worth
more than $25 billion. Though the company has roots in the US,
McDonald today has become an ACCEPTED CITIZEN OF THE
WORLD.

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2.2 McDonalds in India:

McDonalds entered India in 1996.The first McDonalds

restaurant was opened on October 13th at Basant Lok in Vasant Vihar.
McDonalds in India is a 50-50 joint venture between Connaught Plaza
Restaurants and Hard Castle Restaurants which are owned and
managed by Vikram Bakshi and Amit Jatia respectively Connaught
Plaza Restaurants operates in North India whereas Hard Castle
Restaurants operates in Western India.

After opening their outlets in various metro cities, the

company is now trying to expand in cities like Pune and Jaipur also but,
the Indian consumers avoid burgers made from beef and pork which is
taboo according to their religions.

So in order to evade this problem the Indian menus of

McDonalds was Indianised and specifically design in such manner that
it can boost its products to Indian consumers, the menu includes
chicken burgers, veg burgers, veg pizzas, happy meal for childrens,
beverages and deserts. Today there are 79 outlets in north-east India
and more than 53 outlets in south-west India.

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 MCDONALDS FRANCHISE MODEL

Raymond Kroc

Vikram Bakshi Amit Jatia

2.3 Mission Statement:

"McDonalds vision is to be the worlds best quick service
restaurant experience. Being the best means providing outstanding
quality, service, cleanliness, and value, so that we make every customer
in every restaurant smile."

7
Marketing Strategies
of McDonalds

8
CHAPTER 3. MARKETING STRATEGIES OF McDonalds

3.1 BUSINESS STARTEGY:

As per franchise Model of McDonald only 15% of the total

numbers of restaurants are owned by the company. The remaining
85% is operated by the franchises. The company follows all the
framework of training and monitoring of its franchises to ensure that
they achieve good QUALITY SERVICE, CLEANLINESS AND
VALUE FOR THE MONEY offered by the company to its
customers.
By developing a sophisticated supplier networked operation and
distribution system, the company has been able to achieve consistent
product taste and quality across the nations of the world.
McDonalds focuses not only on delivering sales for the immediate
present, but also protecting its long term branding.

3.2 STRATEGY AS PER INDIAN MARKET:

McDonalds thinks according to the customers tastes, value system,

lifestyles, language and perception. Globally, McDonalds was
famous for its hamburgers which are prepared from beef and pork
burgers. But, Indian religion does not allow them to consume beef or
pork. So in order to satisfy demand as per Indian preference,
McDonalds came up with chicken, lamb and fish burgers to suit the
Indian diet.

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 India has a huge population of vegetarians. To satisfy the customers
demand, the company came up with a completely new menu of
vegetarian items like McVeggie Burger and McAloo Tikki. The
separation of vegetarian and non-vegetarian sections is maintained
throughout the various stages.

3.3 McDonalds marketing mix (5Ps) strategies:

After analyzing the market, finding the key factor, target segment
and understanding the market demand, every company needs to
come up with an offers or such type of plan, that speed up the
growth of the company. For which McDonalds uses 5Ps of the
marketing mix which are as follows:
1. Price
2. Product
3. Place
4. Promotion
5. People

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1. Product:
Product is the physical
product or services offered by the
company to its customers.
McDonalds includes certain
aspects of the product such as
packaging, desirability, looks, etc.
This consists of both tangible and
non-tangible aspects of the
product and services.

2. Place:

The place mainly consists of distribution channels and outlets of the

company. It is considered as very important because the product must
be available to the customer at the right place, at the right time and in
the right quantity.

3. Price:
Pricing Strategy is
most important aspect of
marketing mix. It includes
price list, if any discount
facility available or payment
facility available. It should
also take into consideration

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the possible reaction from its competitors regarding the pricing. Pricing
is very much necessary because it is this part, which decides revenue
for the business unit.

4. People:

McDonalds understands the importance of both its employees and its

customers. It understands the fact that a happy employee can serve well
and can result in a happy customer. McDonald continuously does
Internal Marketing because if the internal marketing is effective it will
automatically lead to be in success of external marketing.

5. Promotion:

personal
selling
Advertising Public
Relations
Marketing
Communications
Sales Mix
Promotion Direct
Marketing
Sponsorship

The promotional activities adopted by the McDonald helps

to communicate efficiently with the target customers. The diagram
gives idea about the promotion strategy of McDonalds. Application of

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abovementioned Communication Mix describes the cost that is feasible
as per the consumers.

McDonalds corporate used advertising, personal selling,

sales promotion, public relations, and direct marketing and became
worlds largest leading Burger Empire. These five promotion tools are
used by McDonalds to integrate marketing communication program
which allows McDonalds to access the communication channels
clearly, consistently and easily transfers messages and product to the
target audiences.

2.4 SETTING THE PROMOTION MIX

ADVERTISING:

It is any paid form of non-personal presentation and

promotion of ideas, goods and services by an identified sponsor. The
advertising messages are communicated through various media such as
newspapers, magazines, radio, television, direct mail, internet and so
on.

An Advertisement is targeted to attract the masses it

reaches to large number of people at a time. Advertising is one of the
most important tools for promotion which had various ways of
advertisement in that advertisement through billboards and media are
often used by any of the business enterprise. Consumers mostly
perceive goods which are advertised goods, as they assume it is more
rightful.

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 Due to distinct features of advertisement McDonalds also
hold the hand of Advertising. There are three main objectives of
advertising for McDonalds are to make people aware of an item, feel
positive about it and remember it. The right message has to be
communicated to the right people through the right media. McDonalds
does its promotion through television, hoardings and bus shelters.

They use print ads and the television programmes are also
an important marketing medium for promotion.

o Advertising Tools:

Advertising tool is the medium used for advertising. The various

advertising tools are:

1. Press Media: It includes the use of newspapers and magazines. In

India, a major share of total advertising goes to the press media. All
advertisers can afford to pay for press advertisements as compared to
television advertising.

Newspaper

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2. Broadcasting Media: It includes advertising on radio and television.
In India, television and advertising has gained importance and is ranked
second in terms of advertising expenditure after newspapers. However,
radio advertising is very important in India.

TV

3. Outdoor Media: It includes posters, neon signs, transit, point of

purchase (POP), etc. outdoor advertising can be a good supporting
media to other forms of advertising. It is a good form of reminder
advertising, especially, the POP advertising. Outdoor advertising can
make use of local language to convey advertising message. It is less
expensive as compared to press and television media.

It may include hoardings, neon signs etc.

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4. Digital Advertising: Digital media refers to online digital channels.
Advertising done on digital media is called as digital advertising. On a
digital platform, content is created and developed once but it is shared
multiple times and goes viral.

5. Miscellaneous Advertising: The miscellaneous media includes

direct mail, handbills, calendars, diaries, cinema advertising and so on.

Chak de India

Chennai Express

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 PERSONAL SELLING:

Personal selling is most effective tool for building buyers

preference, convenience and actions. Personal interaction allows
knowing for feedback and adjustments if required. If the organization
had a good Relationship with Buyers they are more attentive towards
personal selling. In personal selling McDonalds employees working in
different outlets are the best example of personal interaction, the
employees are directly serving the customers so, and the face to face
communication is easily possible. In the McDonalds outlet there are
such staff which are appointed for personal selling they are the one who
perform the activities regarding selling up of goods to customers.

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 SALES PROMOTION:

Sales promotion activity consist of promoting the business

unit through organizing various contest, programmes, functions,
distribution of free discounts coupons etc. that attracts attention of the
customers, Also offers strong purchase incentives, dramatizes offers,
boosts sagging sales Stimulates quick response; Short-lived; Not
effective at building long-term brand preferences.

McDonalds organizes several sales promoting contest and

programmes in different retail markets and outlets in which they
distributes free discounts coupons. The statue of Mascot McDonalds is
always there for any occasions that are also one of the logo of
McDonalds.

Combo packs & discounts

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 PUBLIC RELATION:

It is highly reliable and very believable. Many forms of

maintaining public relations can be news stories, news features, events
and sponsorships, etc. It reaches many prospects missed by means of
other forms of promotion, dramatizes company or product, often the
most under used element in the promotional mix; Relatively
inexpensive (certainly not free as many people think--there are costs
involved)

Public Relations are also an important part of the

McDonalds marketing strategy. The restaurant employees play a huge
role in interacting with the public. On a day-to-day basis the employees
commit themselves to customers and the customers feelings toward the
brand. McDonalds feels that before they communicate with their
customers they need to be aware of what their competitors are
communicating, so they can create a beneficial difference between
themselves and the competitors.

Sponsorship

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 DIRECT MARKETING:

There are many forms of direct marketing like Telephone

marketing, direct mail, online marketing, etc. Four distinctive
characteristics of direct marketing are: Nonpublic, Immediate,
Customized, and Interactive Marketing. It includes Well-suited to
highly-targeted marketing efforts.

Direct marketing is also one of the efficient tools for

promotion. The McDonalds uses tool in the home delivery services in
which they directly serve the order to their home. Also they have a
websites which are more in preference for direct marketing in that they
usually mentioned all the new offers along with the contact number of
your nearby outlets.

Direct marketing simply means producers selling directly

to the consumer. Direct selling is either through door-to-door sales
people or by opening sales outlets.

According to Direct Marketing Association (USA)

Direct marketing is an interactive system of

marketing which uses one or more advertising media

to affect a measurable response and/or transaction at

any location.

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CHAPTER 4. ONLINE TRENDS IN INTEGRATED
MARKETING COMMUNICATIONS

The trends in IMC can be explained as follows:

1. Online Trend:

There is growing trend towards internet advertising. At present,

internet is the fastest growing medium in history, which offers
incredible opportunities for a wide range of people both in business
and advertising.

Most of the advertising on internet can be classified as: Websites,

buttons, sponsorships, banners, classified ads, email ads, etc.

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2. Digital Media:

Digital media refers to online digital channels. The digital media

channels are broadly divided into two groups:

o Mobile: It includes Mobile applications, gaming and messaging.

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o Web: Social networks, websites, internet videos, etc.

23
3. Social Media:

There are several social networking sites such as Facebook, Twitter,

and so on. People can interact with others known or unknown to
chat, to make new friends, to share information, etc.

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4. Cell Phones:

Nowadays, there is a growing trend towards cell phone advertising

SMS advertising. Normally, retailers can make use of this medium to
inform about special offers, discounts, etc. The commercial messages
through SMS are very direct and economical.

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 CHAPTER 5. INTEGRATED MARKETING
COMMUNICATIONS PROCESS
The main steps in developing and designing an effective integrated
marketing communication mix are as follows:
1. Identifying Target Audience:
The first step in designing marketing communication mix is
to identify the target audience. The target audience depends upon the
type of the product and competition. The marketer must undertake
proper market segmentation to identify the target customers. The
target audience will influence the marketers decision in respect of:
What to say Why to say
When to say How to say it
Example 1: To attract small kids, McDonalds have a special Happy
Meal menu included in their menu list which includes any of the one
burger (McAloo Tikki/ McVeggie/ McEgg/ McMuffin/ McChicken
etc.) along with a small coke or fruit drink and a toy.

26
Example 2: To attract the working people who are in hurry to reach
their workplace in morning, McDonalds have introduced some
Breakfast Menus in their menu list.

Hot Cakes

Hash browns
Hash Brew Coffee

Chocolate Brownie

Aloo Wrap

2. Determining Communications Objectives:

The next step is to decide on the communication objectives.
The choice of the communication mix techniques depends upon the
communication objectives. The communication objectives can be:
o To make the consumers aware of the product
o To provide information of the product
o To persuade the target audience to buy products and services.
o To develop firms brand image.

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Example 1. To make the consumers aware of the product,
McDonalds prepare some handbills or pamphlets to provide
information about their food products.

Here, McDonalds distributes handbills to each customer

along with their food menus so as to provide the customers
information about some more products which are available at
McDonalds.

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3. Developing integrated communication mix:
The marketing manager must prepare a marketing
communication plan. He may take the help of an advertising agency
to do so. Then marketing plan includes:
o The target audience to be reached.
o The market areas to be covered.
o The products/brands that needs communication.

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4. Designing the Message:
Once the communications are decided, and a
communication plan is prepared, then the marketing manager must
prepare the communication message. The manager may decide to
have the same message in all the markets, or he may have different
messages in different markets, depending upon the nature of
customers, their level of products awareness, the competition, and so
on.
Ideally, the message should be designed by adopting the
AIDA formula:
o Attract Attention
o Create Desire
o Arouse Interest
o Secure Action

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5. Determining Communication Techniques:
The marketer has to determine the appropriate techniques
of communication mix. With each technique, the marketer should
decide about the vehicles or tools of promotion. In case of sales
promotion, the marketer may select a few tools such as free gifts,
discounts, coupons, contests, warranties, trial offers, etc.
Deciding the appropriate blend of communication
techniques depends upon several factors such as:
Nature of consumers
Nature of product
Product life-cycle
Availability of funds

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6. Determining the Budget:
An important decision has to be taken relating to
communication budget. If marketing manager or advertising agency
prepares the budget, then there is a need to take approval from top
management of the firm. The marketer prepares the budget taking
into consideration the following factors:
o Type of the product
o Nature of customers
o Objectives of the promotion campaign
o Nature and extent of competition

7. Implementation of Communication Plan:

The marketer then makes arrangement to implement the
communication plan. This would involve the following steps:
o Selecting the techniques and tools
o Placing the communication message in the case of advertising and
publicity in the right media.

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8. Review:
The marketing manager should evaluate the performance
of the communication plan. Such evaluation is required to find out
whether the communication or promotion mix has achieved the desired
objectives or not. If the objectives are not achieved then there is a need
to adopt follow-up measures, such as redesigning the
communication message, redesigning the communication mix, etc.

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CHAPTER 6. CO-BRANDING STRATEGY OF McDONALDS

Co-branding strategy is also one of the beneficial

instrument for boosting the business and providing different the same
things in different manner. In fact co-branding means having a tie ups
with another firm and serving the customer with both the products. It
helps in making profit for both the business enterprise as well as to
increase their sales and growth of organization.
The two different brands enter into co-brand through
certain contracts or agreement and as per the agreement they bifurcates
their earnings from their brands.
There are different examples of co-branding strategy of
McDonalds which are as follows:

COCA-COLA:
Coke is one soft drink brand that had tie up with
McDonalds since past many years. In McDonalds the coke is the best
beverage in cold drinks which are served to the customers along with
different menus of the McDonalds for example happy meal, happy
price menu etc.
As coke is preferred by childrens even their parents as well
as the young youths. Therefore by keeping in mind the consumer wants
they came up with Coca-Cola. In fact this co-brand of McDonalds is
initiated to increase the volume of sales of the both the business
enterprise. And of course this co-branding strategy has encouraged both

34
the business in achieving the successful returns of customers
satisfaction.
On April 27, 2009: The Coca-Cola Company had
announced are freshed line up of fountain and bottle beverages that will
be added to McDonalds U.S. restaurants, beginning this year. This
effort -- part of a larger beverage strategy -- will provide McDonalds
customers even more beverage choices and meet customers changing
taste preferences and desire for more suitable, convenient beverage
options.

35
WALT DISNEY:
A Parade of Disney Happy Meal Toys

McDonalds will introduce a collection of 100 exclusive

Happy Meal toys as they are inspired by Disneys admired collection of
dramatic, video and television characters.

Representing more than 40 Disney films, the McDonalds

premiums include a mix of new and classic Disney characters, allowing
kids and parents of all ages to recall their favorite Disney memories.

Each Happy Meal premium is fully decorated and is

featured on a memorial base, which includes the characters debut date,
characters name and the Walt Disney World "100 Years of Magic"
logo.

The McDonalds Happy Meal promotion featuring the Walt

Disney World"100 Years of Magic" celebration is a historical
collection of Disney favorites, from classic characters like Mickey
Mouse, Dumbo, Cinderella, and Mary Poppins to the newer
innovations, including: Ariel, Aladdin, Bianca, Pocahontas, Tarzan,
Jesse and Hercules.

One toy is included with each Happy Meal and can be

purchased at participating McDonalds restaurants, while supplies last.

But, unfortunately the Walt Disney had end the relationship

with McDonalds due to some genuine reasons. Thus Walt Disney is
considered as X-co-brand of McDonalds.
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BARBIE TOYS
McDonalds Barbie Toys have been included with Happy
Meals repeatedly since the Happy Meal has been in existence. Over the
last thirty years, Barbie has been one of the most popular toys in a
McDonalds Happy Meal.
Barbie Happy Meal Toys have taken the form of a variety
of Barbie doll favorites. These toys have become a highly sought after
segment for collectors of both Barbies and McDonalds toys.
McDonalds Barbie Toys comes in eight collectible characters in 1994,

37
including Bicycling Barbie, Jewel and Glitter Shani, Camp Barbie, and
Camp Teresa.
Each Barbie miniature was 4 and inches tall. Since then,
the Barbie and Friends dolls have been collectible Happy Meals toys in
1996, 2004,2005 and 2007, to just name a few.
If you missed any of the McDonalds Barbie toys that you
may need to buy for your collection of dolls, you will find them for sale
on eBay.

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CADBURY
McDonalds have included Cadbury in the beverages
prepared with Cadbury and creamy milk shakes mostly loved by
children. England has combined two favorite things that are Cadbury
and crme eggs. Now McDonalds is offering a Cadbury Crme Egg
McFlurry. It is tasty and rich also it is provides some quantity of
protein and vitamins as it is made from eggs and milk, A cold crme
eggs with the vanilla ice cream, mix in a sauce that looks like the
yellow yolk, and add in delicious chocolate bits.
The tasteful McFlurry have also worked in anticipating the
taste of the customer. Therefore, it is considered as one of the most
preferring beverages in the menus of McDonalds.

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HOT WHEELS
The History of McDonalds and Hot Wheels die-cast cars:
McDonalds has attempted to develop promotions for children, since
1961 with small related plastic toys, in their Happy Meals. The first
models of cars distributed for McDonalds started in 1983, using the Hot
Wheels models of the normal line and followed all the way through
1990.
In 1991McDonalds found another way to distribute the Hot
Wheels in their Happy Meals for the first time. Some of these were Hot
Wheels by Collector Number and were also placed in a factory plastic
baggie for the first time. Since then, some annual promotions related
the models of cars had been made. They had enclosed models like, Hot
Wheels, Matchbox, Stompers 4X4, Tonka and Bigfoot toys.

40
MCDONALDS TIE UP WITH HINDUSTAN PETROLEUM
AND BHARAT PETROLEUM PERTROL PUMPS
The strategy behind opening their outlets near petrol pumps
is that they can serve their products even on the highways. McDonalds
already has14 outlets on national highways and they are planning to
open 50% of their stores in the coming year on the highways.
In order to achieve that, they tie up with oil marketing
companies like Hindustan petroleum and Bharat petroleum to open on
revenue-sharing model. The reason behind starting their outlets on
highways is to serve those customers who perform their day to day
activities through highways.
People mostly prefer food stores on highways for dinner
purpose, their will hardly some people who go for a breakfast. So, idea
of McDonalds to start on highways is that they can offer even dinner
as well as their existing fast food items.

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McDONALDs COMPETITORS

42
CONCLUSION:
o McDonalds today is one of the worlds great entrepreneurial
organizations.
o Once the marketing strategy is in place, various responsibilities
are given to different individuals so that the plan can be
implemented.
o Systems are put in place to obtain market feedback which
measure success against short-term targets.
o McDonalds has to ensure that this is done within the confines of
a tightly controlled, finite marketing budget.
o Promotional strategies do have an impact on its customers, but if
the product that is being advertised is not good enough then it is
very difficult to maintain consistency in sales figures.

43
BIBLOGRAPHY:
Marketing Strategies & Plans by Michael Vaz, Madhu Nair and Vijetha
Shetty.

WEBLOGRAPHY:
http://sales-management-slides.com/marketing-strategy-of-
mcdonalds/
http://www.mcdonaldsindia.net/econo-meal.aspx
https://www.youtube.com/watch?v=jmNrvlQ73pU
http://www.slideshare.net/vijay_19897/final-report-on-mcdonalds
http://prezi.com/bg-annveraer/mcdonalds-imc-plan-mceco/
http://www.consumerpsychologist.com/intro_Promotion.html
http://press.emerson.edu/imc/tag/mcdonalds/
http://myassignmenthelp.info/assignments/integrated-marketing-
communications-concept-mcdonalds/

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