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Student Name: Chand Pasha

Student ID: 210126590
Module Title: Marketing and Data Analytics
Module Code: MBB7009M
Module Leader:
Word Count: 3115

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Declaration

“I Chand Pasha bearing student Id: 210126590 declare that I am the sole author of this
assignment and the work is a result of my own investigations, except where otherwise
stated. All references have been duly cited”.

Executive Summary

McDonald Corporation's marketing report and strategy, as well as how the company
produces a strategic plan for its business corporations based on an examination of internal
business environments, were explored in this research. It also aims to establish how to
leverage the organization’s internal resources, competences, and capabilities of the
firm to exploit opportunities and resolve issues in the external business environment. To
help with this endeavor, many data collecting approaches were employed, such as
SWOT, PESTLE analysis, and Porter's five forces model. The usage of marketing
communication technologies to communicate with clients is also explored in Integrated
Marketing Communication. McDonald's integrates online and offline media from
numerous social media channels, according to this study.

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Contents
List of figures.......................................................................................................................4

Introduction..........................................................................................................................6

Company profile..................................................................................................................6

Marketing environmental analysis.......................................................................................7

SWOT Analysis...............................................................................................................7

Strengths.......................................................................................................................7

Weakness......................................................................................................................8

Opportunities................................................................................................................8

Threats..........................................................................................................................9

Micro-Environment: Porter's Five Forces Model............................................................9

Customers...................................................................................................................10

Competitors................................................................................................................11

Macro-Environmental Analysis: PEST Analysis...........................................................12

Economic....................................................................................................................13

Political.......................................................................................................................13

Integrated Marketing Communication...............................................................................14

TV Advertising..............................................................................................................14

Sales Promotion.............................................................................................................14

Public Relationships.......................................................................................................15

Integration of online and offline media.............................................................................16

Link to offline marketing strategy.................................................................................18

Conclusion.........................................................................................................................19

References..........................................................................................................................19

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List of figures

Figure 1: McDonald's logo..................................................................................................4

Figure 2: Statistics of different fast food chains in USA.....................................................6
Figure 3: Porter's Five Forces Model...................................................................................8
Figure 4: Integrated Marketing Communication of McDonald's......................................13
Figure 5: Visibility of different brands on social media....................................................15

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McDonald’s Marketing Report

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Introduction

Marketing is a critical component of an organization's growth, and it underpins

everything the firm does. It encompasses a wide range of actions concerned with the
selling of a firm’s goods and services. The most apparent marketing strategy is market
research, which better matches items to customer needs and demands (Gleeson, 2019).
Globally, the McDonald’s (MCD) is the biggest fast food chain. In 1940, with an outlet in
San Bernardino, California, Richard and Maurice McDonald established the company.
The company presently serves over 56 million customers every day. It is rapidly gaining
popularity in regions as far apart as Brazil, China, and Indian sub-continent (McDonald’s,
2022).

Company profile

Figure 1: McDonald's logo

McDonald's (MCD) is the biggest fast food chain, supplying over 58 million population
daily in 118 countries through a network of over 31,000 locations, from which 6,899 are
company-owned, 20,499 are franchised, and 3,960 are managed through associates. It
employs over 1.5 million people globally, with 43,492 corporation restaurants operating
in the United Kingdom in 2004, with 2,292 hourly wage earners. Enterprises serve over
25,000 individuals, including 2,291 eatery management and administrative employees

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(McDonald’s, 2022). McDonalds acquired a controlling share in Chipotle Mexican Grill

and McD's leased the Boston market to Sun Capital Partners in 2007.

"McDonald's earnings are derived from lease, rights, and payments made by franchisees;
income increased by 27 percent on average to $22.8 billion in 2007, with a 9 percent
increase in net margin to 3.9 billion" (Annual report, 2020).

Marketing environmental analysis

The key factors that impact a firm's marketing activities are referred to as its "marketing
environment" (Udoagwu, 2020).

SWOT Analysis

Strengths

McDonalds is the world's greatest franchise, outperforming opponents such as Burger

King, thanks to its "just in time" approach. The firm was successful in both domestically
and internationally. It has a tremendous brand presence, which has helped it be the most
successful eatery brand in the world.

McDonald's was the very first restaurant to include dietary guidelines on every package.
McDonald’s is a worldwide brand that is accessible throughout many nations and uses
the similar strategic ideas, advertising across every region ,and positioning, however the
marketing strategy varies, which has enabled the corporation maintain a significant
market share and equivalent brand recognition in all nations.

Which is why, in any field, McD's is regarded the most recognizable and beloved brands
worldwide. McDonald's also has a significant worldwide presence, despite the fact that its
closest local opponent is barely half its size; this has allowed the firm being the leader in
the market in both domestic and overseas markets.

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Figure 2: Statistics of different fast food chains in USA

Weakness

Due to its incapacity to compete with pizza fast food competitors, MCD was unable to
supply pizza. It is increasing the cost on training as staff turnover rises. It is known to
upset native eating habits, particularly among the younger population. The firm's capacity
to generate sales is deteriorating. In addition, the firm's promotional strategies and
connections with its local clients are lacking. There are several advertisements and
promotions for the firm that disrespect and harm the public reputation.

Opportunities

MCD provides nutritious items with nutritional knowledge on every boxes, which is a
wonderful option. It is the first FDA-approved fast food chain to provide burgers with
less fat and calories. It follows the "just in time" business model, helping people in 90
seconds. It provides ingredient meal options such as gluten-free and peanut. Combining
enterprise and retail, MCD should try to provide new and exciting elements to existing
cuisine in order for the people to prefer them to new eateries. McDonald's may be wise to

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keep pushing for healthier, more personalized options. despite the stereotype of fast-food
outlets being “junk-food factories”. A concession on each product in the business might
attract more customers. Consumers have indeed reported receiving gifts and rebates
despite when they do not require them or are unable to utilize them. Throughout this
difficult period, McDonald's can, enhance roadside pick-ups, drive-thru choices, delivery,
and self-order kiosks to gain more consumers.
Threats

Quick advancement of technology by the mass may reduce financial returns, and the
rewards of bettering consumer experience may not even yield the desired results.
McDonald's, being a global fast-food business, has repeatedly run into cultural challenges
in many regions of the world, tarnishing the company's image. It's also difficult to change
and function differently depending on where the franchise is located. McDonald's, for
example, was involved in a major incident a few years ago for utilizing non-halal foods in
Muslim nations, and the company's business was threatened. Many people are leading
healthier lives and choosing for healthier foods like organic smoothies and salads.
Regrettably, the bulk of MCD's menu options are subpar, and the corporation ends up
losing health-conscious buyers to competitors who offer better solutions.

Micro-Environment: Porter's Five Forces Model

It is a method for analysing several micro-environmental categories in order to

comprehend the influence each brand has on a firm in an enterprise. In organizational
analysis, the five forces can be applied. The five factors will be used to evaluate the
income and long-term viability of the restaurant industry.

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Figure 3: Porter's Five Forces Model

Customers

McDonald's consumers are a significant environmental effect. McDonald's serves almost

54 billion buyers each day. The majority of MCD's clientele are under the age of thirty.
As a consequence, firms are always aware of their options. As a result, McDonalds is
influenced by consumer interest, variety, and choice.

MCD must deal with the impact of customers on the organization's growth. This
component of the Five Forces analysis looks at consumer power and wants, as well as
how their actions affect businesses.

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If a firm provides a certain good or service, it will be able to charge a higher price to its
clients as they'll have no alternative but to purchase from the corporation if they demand
that item. When customers have a range of qualified vendors for a product, businesses
must battle by offering better price or higher value for money in order to sell their goods.

The following are external contributing factors to buyers' considerable negotiating

leverage:

 Numerous providers
 Substitutes are readily available
 Low switching costs

Due to the ease of switching from one store to another, clients may easily impose their
demands on McDonald's. This exterior element increases customers' negotiating power in
the Five Forces analysis paradigm. Subject to market competition, consumers may now
pick from a variety of fast food outlets besides McDonald's.

As a consequence of this circumstance, clients' bargaining power becomes a crucial tool

in affecting the firm's external environment. The presence of many options boosts buyers'
bargaining power in this case. Alternatives include food booths and stores, artisanal
bakeries, microwave meals, and foods that may be cooked at home.

Competitors

Burger King, Hardees, and Wendy's, are McDonald's primary competitors. McDonald's

has always had to be wary of its competition. In this sense, factors such as rival quality of
product, service, price competitiveness, sales, growth, and market all have an influence
on McDonalds.

McDonald's has strong competition in the fast food restaurant industry, which is
overcrowded. This element of Porter's Five Forces analysis approach considers the
effects of competing enterprises in the industrial setting. The following external variables
contribute to MCD fierce competitive rivalry:

 Large number of businesses - Powerful Force

 Organizations with a high level of aggression - Powerful Force

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 Minimal switching costs – Powerful Force

Fast food establishments come in a variety of shapes and sizes, from global chains like
MCD's, to little neighborhood eateries. This external element amplifies the competitive
power in the sector.

In the Five Forces analytical framework, entrepreneurial aggressiveness is also an

element that promotes competitiveness. In this setting, several medium and large
enterprises market their products widely. Consequently, MCD confronts increasingly
strong competition. Diners may easily switch to other restaurants such as Burger King
and Wendy's because of the minimal switching costs.

The competing drive is aided by an external unit. As an outcome of this element of

MCD's Five Factors research, competitiveness is one of the most important external
forces to account for in the firm's operations management.

A researcher will decide if every factor has a weak or strong influence on sector
businesses using Porter's model. The topic of competition strength concentrates on how
strongly businesses should compete with competing firms to obtain clients and share in
the market. Intense industry rivalry reduces potential profits for all enterprises as buyers
have a big market to select from and may rely at least some of their buying habits on
price.

In a competitive sector, clients will be more committed to the organisation that best meets
their specific needs.

Macro-Environmental Analysis: PEST Analysis

Two factors of the SLEPTS approach with respect to McDonald’s is discussed in the
following section. Economic and Political aspects are discussed as it seems to be the most
important factors which effect the company.

Economic

The economic aspect is a crucial part in PESTEL analysis. The economic aspect of a
company’s growth is crucial. The recent global financial crisis has been advantageous to

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the firm despite the fact that it has been under a lot of stress because it is viewed as an
unhealthy food alternative.

Many individuals and families choose to dine at MCD’s rather than a more expensive
eatery as disposable earnings decreased owing to joblessness and discretionary
expenditure by customers. In an economic slump, consumers tend to pick the unhealthy
option owing to price attraction, despite warnings that McDonald's style food is harmful
and promotes obese.

Furthermore, as emerging economies such as India, brazil, china, and many others
proceed to see their common people grow, McDonald's has seen a surge in company and
continues to see ability in these market place as more people are able to purchase
McDonald's and it is seen as a more prestigious preference among these newly affluent
classes of people (Beng-Huat, 2000).

Functioning in a global environment McDonalds must comply with international business

standards, such as taxation, because each firm has its own tax rules, and McDonald’s
franchises must send a portion of their sales to McDonald's headquarters in the United
Kingdom. McDonald's imports cattle and potatoes to meet its need since local markets
can't keep up with demand.

Political

As concerns about juvenile obesity rise in the developed world, more governments are
taking steps to enact legislation to help lower the prevalence of childhood obesity
(Siehoyono, 2005). Michelle Obama, the wife of former US President Barack Obama, is
now heading a drive to combat obesity in children and encourage parental involvement in
guiding children's eating habits.

This has an indirect influence on fast food restaurants, notably MCD's, because more
people consider McDonald's-style meals to be an "unhealthy choice." As a response, in
some regions, the corporation has forced to modify some of its items on the menu and
provide a healthier option.

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For instance, the firm has launched inexpensive sweets that are considered healthy
options in the United Kingdom, the United States, and Canada, such as Apple pie
(Siehoyono, 2005).

Because of health concerns, governments in the United States and Europe are currently
attempting to regulate the fast food industry. Governments are imposing restrictions on
the issuance of franchise licenses. In order to provide tax and job opportunities in foreign
markets, there should be solid partnerships with the government. China is also putting
pressure on McDonald's because it is causing cultural disruption.

Integrated Marketing Communication

Integrated Marketing Communications (IMC) is a term that refers to the coordination of

promotional operations throughout many networking sites. An effective IMC includes
sales promotion, advertising, events, public affairs, as well as other variables. The basic
purpose of marketing plan is to make a cohesive theme that resonates to reach the
audience across all media (Iacobucci, 2013). MCD demonstrates an outstanding IMC that
can be used to demonstrate how successful IMC procedures may assist a business
accomplish its communication objectives.
TV Advertising
In Australia, MCD's television commercial shows an emotional story that connects
potential audience and is linked to family bonds, building feelings of belonging and
increasing family enthusiasm. Emotional advertising elicits positive feelings in clients,
improving their views of the commercials' credibility along with their feelings towards
the business (Changjo & MacInnis, 2005). TV commercials should be colorful, dramatic,
and emotive (Iacobucci, 2013).
Sales Promotion
According to Iacobucci (2013), IMC's method is not restricted to conventional
commercials and can be used in a variety of media. A clever marketing effort, for
instance, may keep customers pleased. MCDs employ a number of promotional
strategies, including the mailing of prizes and vouchers. Every few months, MCD's
promotional programs send out a large number of discount booklets.

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It might also be an amazing illustration of mixing a sales promotion with print

advertising, as shoppers can find coupons pamphlets in magazines, newspapers,
magazines, and even the backs of recipes. MCD's advertising efforts are no longer limited
to the eatery; they now span all media platforms, demonstrating effective IMC and
diversified marketing communications.
Public Relationships
IMC is in charge of communicating with not only its core businesses and clients, but also
with external stakeholders like sponsors, the society, stakeholders, and the state
(Iacobucci, 2013). One of the responsibilities of PR personnel is to reveal anything
noteworthy as soon as possible in order to boost the positive brand and image.
McDonald's PR strategy is successful, for example, they show concern about the well-
being of children and families. 'Ronald McDonald House Charities' was founded in 1974
with the mission of providing resources and support to families with sick children around
the world by implementing the steps away from a hospital' program.
6 million families and children in communities are affected. McDonald's public relations
approach is definitely connected to its target clientele, who are families with children.

Figure 4: Integrated Marketing Communication of McDonald's

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Integration of online and offline media

According to McDonald's 10 digital marketing tactics, the company employs internet

marketing to advertise itself by giving a point of differentiations (PODs). MCD's current
digital marketing strategy includes studying and promoting ten various digital marketing
tactics via web browsers, Facebook, YouTube, Twitter, and other networks.

As per Gerzema & D'Antonio (2011), electronic marketing is done on a variety of sites,
namely Facebook, Twitter, LinkedIn social networking accounts, online blogging, and
interactive gameplay in internet browsers like Firefox, Google, and YouTube videos.

McDonald's seems to have a big following on social media., establishing itself as a

multinational company. Due to their worldwide brand significance, They might use social
media to keep their present followers and build brand awareness.

Table 1: McDonald's social media metrics as of March 2021 (Giraffe, 2021)

S.No Website Followers/Subscribers

1 Facebook 80 m (UK account)
2 Twitter 3.7 m (global); 234k (UK)
3 Instagram 3.9 m (global); 227k (UK)
4 YouTube 466k (global/US); 43.8k (UK)
5 Pinterest 19.7k

All are presently connected on the McDonald's website, except Pinterest. McDonald's
was active on Pinterest in 2013 since it was fresh and exciting at the time; however, it no
longer corresponds to their brand. The original case study made no mention of Instagram.
Instagram had only been around for three years at the time, and companies had yet to
catch on. What a difference a decade makes! McDonald's uses localized social media
channels in addition to the US/global account everywhere over the world. This Database
search returns only a handful distinct McDonald's localized Pages.

This is partly owing to the disparities in choices, marketing, and regulations between
nations. Regionalised broadcasts also enable for interaction in languages other than

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English, providing for a more active participation with customer base outside of English-
speaking countries. McDonald's Nicaragua, for instance, uses both English and Spanish
in their advertisements. MCD's uses social media to promote a friendly, approachable
image. This is in line with their objective of using social media to engage with existing
and potential brand advocates in a friendly way.

When customers read their play on words with hashtags and Hash Browns in their bio on
Twitter, they'll get humorous, relevant tweets. McDonald's takes advantage of
Instagram’s mobile focus by including a link to meals via the McDonald's app in their
profile and using a lot of emoji’s. McDonald's has the greatest following on Facebook,
with 80 million likes and follows. This channel is more interactive for the business
because it is where the majority of users like to communicate with it, but they somehow
keep articles light-hearted and engaging.

Figure 5: Visibility of different brands on social media

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Link to offline marketing strategy

To increase digital communications strategy adherence, online and offline initiatives will
be connected together. MCD's internet services, for instance, may be marketed offline
through monitors in stores, TV ads, newspaper ads, and billboard spots.

A direct correlation between McDonald's online and offline marketing strategies has been
established in the suggested marketing plan. Clients who gain loyalty points by playing
MCD's themed games on online community sites should use their reward points to buy
fast food at a nearby MCD outlet.

Consumers, on the other hand, can obtain a smart application installation code via print
advertisements or television advertising that highlight the distinctiveness of McDonald's
themed online games. According to Chaffey and Bosomworth (2013), a combined
framework for online and offline marketing strategy allows businesses to leverage both
mediums in different ways to enhance client reach.

MCD's may use its physical distribution network, like quick service restaurants (QSRs),
cafes, etc., to notify arriving clients about the firm's online rewards as part of its digital
marketing strategy.

Conclusion

McDonald's is one of the planet's best known food enterprises, with unrivaled
internationalization and customer trust. Considering the firm's long record, it must remain
vigilant about potential dangers. Several of the firm's strengths, weaknesses,
opportunities, and threats that the company encounters in the market are analyzed in this
report's SWOT analysis for McDonald's. Moreover two important factors of SLEPTS
analysis is also mentioned. Integrated marketing communication factors such as TV
advertisement, sales promotion and public relationship are also discussed with a detailed
mention of online and offline media platforms.

Upper-level management should establish a safe atmosphere for reassurance, support,

adjustments, and organizational commitment in order to enact the plans smoothly and
profitably. McDonald should then make sure that all of his tactics are well-planned and

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meticulously executed in advance, since these adjustments and plans will determine
whether a business succeeds or fails.

While the firm faces several obstacles from the outside world, it has proven to be adept at
changing its marketing mix operations in response to the effect of external forces.
Finally, the organization has the chance to improve the efficacy of its current online
strategy by implementing the above recommendations and combining the restructured
digital strategy with offline channels.  

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References

Annual Report (2020). McDonald’s. Available at:

https://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_MCD_2020.pdf
(Retrieved May 14, 2022).

Beng-Huat, (2000). “Singaporeans Ingesting McDonald’s”, Consumption in Asia,

Routledge, Taylor and Francis.

Chaffey, D., & Bosomworth, D. (2013). Digital marketing strategy Planning Template.
Retrieved from https://web.efzg.hr/dok/MAR/vskare/kolegiji/im/materijali/digital-
marketing-plan-template-smart-insights.pdf.

Changjo, Y, & MacInnis, D. (2005). ‘The Brand attitude formation process of emotional
and informational ads’, Journal of Business Research, 10, p. 1397, Academic One File,
EBSCOhost.

Gleeson, P. (2019). ‘The Importance of Marketing for the Success of a Business’.

Available at: https://smallbusiness.chron.com/importance-marketing-success-business-
589.html.

Gerzema, J., & D’Antonio, M. (2011). Spend shift: How the post-crisis values revolution
is changing the way we buy, sell, and live. San Francisco, CA: Jossey-Bass.

Giraffe, (2021). “Social Media Case Study: How McDonald’s Uses Social Media”.
Available at: https://www.giraffesocialmedia.co.uk/social-media-case-study-how-do-
mcdonalds-use-it/ (Retrieved May 14, 2022).

Hottovy, RJ. (2020). "Value, Access, and Franchisee Health Position McDonald's for
Postpandemic Growth". Morningstar.com. (Retrieved May 15, 2022).

Iacobucci, D. (2013). Mm4, n.p.: Mason, Ohio, South-Western; Andover: Cengage

Learning.

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McDonalds’s (2022). “McDonald's Reports Fourth Quarter and Full Year 2021 Results”.
Available at: https://corporate.mcdonalds.com/corpmcd/en-us/our-stories/article/press-
releases.Q4-2021-results.html (Retrieved May 15, 2022).

Purdy, C. (2017). "McDonald's isn't just a fast-food chain—it's a brilliant $30 billion real-
estate company". Quartz. (Retrieved May 14, 2022).

Siehoyono, L. (2005). The McDonald’s Case: Strategies for Growth.

Udoagwu, K. (2020). ‘What Is a Marketing Environment?’ Available at:

https://www.wrike.com/blog/what-is-marketing-environment/.

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