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Module Title: Marketing and Data Analytics
Module Code: MBB7009M
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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 organisation'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, including PESTLE
analysis, SWOT 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.
 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
 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
McDonald’s Marketing Report
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 is the largest fast food enterprise. With an outlet in San
Bernardino, California, Richard and Maurice McDonald founded the company in 1940.
McDonald's now serves more than 56 million consumers per 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 is the biggest fast food firm, supplying over 57 million population every day
in 119 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
(McDonald’s, 2022). McDonalds acquired a controlling share in Chipotle Mexican Grill
until October 2006, and McDonalds leased the Boston market to Sun Capital Partners in
2007.Andrew j. v During April 2004, McKenna has served as head of McDonalds
Company, with Harrell Perrine, president of Blue Cross and Blue Shield of Florida, Jim
Dalton, vice president of the Dalton Agency, Ryan Schwartz, finance director of Zurich
Insurances, Inc., and Bill Van Zante, administrator of McDonald’s.

"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. McDonald's was successful in both the home
and foreign arenas. It was named "best place to work for minorities" by Fortune magazine
in 2005. 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, McDonald's is regarded one of the most well-known and
adored 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.
 Figure 2: Statistics of different fast food chains in USA

Weakness

McDonald's was unable to provide pizza due to its inability to compete with pizza fast
food companies. McDonald's 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

McDonald's provides nutritious items with nutritional knowledge on every boxes, which
is a wonderful option. McDonald's is the first FDA-approved fast food chain to provide
low-fat, low-calorie ham burgers. McDonald's employs the "just in time" business model,
helping people in 90 seconds. They have a formic dining setup available. Greater foreign
growth is still in the works. Provides ingredient meal options such as gluten-free and
peanut. Combining enterprise and retail, McDonald's should make an effort to bring
fresh, unique things to existing cuisine in order for people to prefer them over the new
restaurants. Although fast-food outlets battle the stigma of being "junk-food factories,"
McDonald's may play it smart by pursuing its active effort toward healthier and more
personalised options. 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

The majority's rapid adoption of new technology might decrease the financial return, and
the benefits of improving customer experience might not even produce the intended
outcomes. McDonald's, being a worldwide fast-food franchise, has frequently
encountered diverse cultural issues in various parts of the globe, harming the firm’s
reputation. It's also difficult to adjust and function differently depending on the
franchise's area. McDonald's, for example, was embroiled in a major scandal a few years
ago for utilizing products that were not 'Halaal' in Muslim nations. Many people are
leading healthier lives and choosing for healthier foods like organic smoothies and salads.
Sadly, the majority of McDonald's menu choices are poor, and the company risks losing
health-conscious consumers to rivals that provide better alternatives.

Micro-Environment: Porter's Five Forces Model

Porter's Five Forces is a method for examining several micro-environmental categories in

order to comprehend the influence each band has on a corporation 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.
 Figure 3: Porter's Five Forces Model

Customers

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

54 billion consumers every day. McDonald's clients are mostly from the younger age. As
a result, businesses are continually cognizant of its choices. As a result, consumer
interest, variety, and preference all have an influence on McDonalds.

McDonald's needs to address the effects of consumers on the company's success.

Consumer power and desires, as well as how their actions effect enterprises, are
discussed in this section of the Five Forces examination.
If a company offers a particular product or service, it will be able to pay higher pricing to
its clients since they will have no alternative but to purchase from the company if they
require that product. When clients have a variety of possible suppliers for a commodity,
corporations must compete by giving better pricing or greater worth the money if they
want to sell their stuff.

External variables that contribute to purchasers' high negotiating power include the
following:

 Large number of providers

 High availability of substitutes
 Low switching costs

Consumers may easily force their expectations on McDonald's due to the simplicity of
transferring from one outlet to the next (low switching costs). 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.

Buyers' negotiating power becomes a major weapon in influencing the company's external
environment as a result of this scenario. Consumers' negotiating power is boosted in this situation
by the existence of various alternatives. Food kiosks and outlets, artisanal bakeries, microwave
dinners, and dishes that may be prepared at house, for example, are all viable alternatives.

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.

Because the fast food restaurant business is saturated, McDonald's confronts stiff
competition. The impacts of competing businesses in the industrial environment are
addressed in this component of Porter's Five Forces analysis methodology. The
tremendous force of competitive rivalry at McDonald's is based on the following external
factors:
High number of firms – Strong Force

High aggressiveness of firms – Strong Force

Low switching costs – Strong Force

There are many different types of fast food restaurants, including worldwide franchises
like McDonald's and small local sandwich shops. This external element amplifies the
competitive power in the sector.

Business aggression is also a component that drives competitiveness in the Five Forces
analysis paradigm. Many medium and big businesses sell their goods extensively in this
scenario. McDonald's Corporation faces more intense competition as a result of this
circumstance. Low switching costs also make it simple for customers to switch to other
eateries like and Burger King and Wendy's.

An exterior component contributes to the competitive force. As a result, this aspect of

McDonald's Five Factors study demonstrates that competition is one of the most
important external forces to consider in the company's strategic management.

A researcher will decide if every factor has a weak or strong influence on sector
businesses using Porter's model. The subject of power in competition focuses on how
hard enterprises must fight industry rivals (competitors) to win consumers and market
share. Strong industry competition diminishes potential profit for all businesses since
customers have a large market from which to choose and may base at least a small part of
their purchasing decisions on pricing.

Customers will be more loyal to the business that best serves their special demands in an
industry with limited competitiveness.

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. Although the firm has been under a lot of stress since it is
perceived as an unhealthy food option, the recent economic crisis has been beneficial to
the company.

Many individuals and families choose to dine at McDonald's rather than a more costly
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 worries about kid obesity grow in the industrialized world, more politicians are
stepping up to implement laws to assist reduce childhood obesity incidence (Siehoyono,
2005). Michelle Obama (wife of US President Barack Obama) is now leading a campaign
to reduce childhood obesity and promote parental participation in helping youngsters
make appropriate eating choices.

This has an indirect impact on fast food merchants, particularly McDonald's, since more
consumers regard McDonald's-style meals as 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.

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

IMC stands for Integrated Marketing Communications, which entails coordinating

promotional activities across several communication channels. Sales promotion,
advertising, events, public relations, and other factors are all part of an efficient IMC. The
main goal of marketing strategy is to give all media a common theme that appeals to
target markets (Iacobucci, 2013). McDonald shows an excellent IMC, which may be used
as an example of how effective IMC techniques can help an organization achieve its
communication goals.
TV Advertising
McDonald's television advertisement in Australia depicts an emotional tale that engages
target consumers and is tied to family relationships, instilling family feeling and
garnering greater family interest. Emotional advertising elicit good emotions, which
improves customers' perceptions of the ads' believability, as well as their sentiments
toward the brand (Changjo & MacInnis, 2005). TV commercials should be colorful,
dramatic, and emotive (Iacobucci, 2013).
Sales Promotion
Iacobucci (2013) stated that IMC's technique is not limited to traditional advertisements
and can be deployed across several media. A smart sales campaign, for example, may
keep consumers happy. McDonald's uses a variety of promotional tactics, such as mailing
out rewards and vouchers. McDonald's advertising programs send out a lot of coupon
booklets every few months.
Furthermore, it may be a fantastic example of combining a sales campaign with print
media, where customers can locate and get coupon booklets in newspapers, magazines,
and even the back of recipes. McDonald's advertising campaigns are no longer restricted
to the restaurant; they are now used across all media channels, presenting successful IMC
and diversifying marketing communications.
Public Relationships
IMC is responsible for communication with not just its core markets and audiences, but
also external publics such as the sponsors, community, shareholders, and government
(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

Integration of online and offline media

According to McDonald's 10 digital marketing tactics, the corporation uses a digital

marketing technique to promote itself by providing a point of distinction (PODs). Ten
distinct digital marketing practices are being studied and pushed through Facebook,
Twitter, YouTube, web browsers, and other platforms as part of McDonald's current
digital marketing plan.

Digital marketing is carried out on several platforms such as Twitter, Facebook, 

LinkedIn social networking accounts ,Hi5,online blogging, immersive gaming in web
browsers such as Google, Firefox, and YouTube videos, according to Gerzema &
D'Antonio (2011).

McDonald's on the Internet has a strong social media presence, having established itself
as a globally recognized brand. They may use social media to focus on keeping existing
followers and brand loyalists because of their global brand prominence.

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. Localised feeds also enable communication in languages other than English,
allowing for a more personal relationship with followers and clients outside of English-
speaking nations. McDonald's Nicaragua, for example, posts in both English and Spanish.
McDonald's uses social media to project a lighthearted, accessible persona. This fits into
their goal of leveraging social media to communicate with current consumers and future
brand champions in a nice manner.

On Twitter, you know you'll get witty, relatable tweets as soon as you read their play on
words with hashtags and Hash Browns in their bio. 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 emojis. 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

Link to offline marketing strategy
Online and offline campaigns will be linked together to maximize digital
communications plan retention. For example, McDonald's online services can be
advertised through offline channels such as electronic displays in shops, television
commercials, newspaper advertisements, and billboard placements.

A direct correlation between McDonald's online and offline marketing strategies has been
established in the suggested marketing plan. Customers who earn reward points through
playing McDonald's themed games on social networking sites, for example, must visit
local McDonald's locations to use their reward points to purchase fast food.

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.

In terms of McDonald's digital marketing strategy, the corporation may utilize its offline
distribution channels, such as quick service restaurants (QSRs), cafés, and so on, to
inform arriving consumers about the company's online perks.

Conclusion

McDonald's is one of the most well-known food companies in the world, with
unparalleled globalization and consumer loyalty. Despite the company's long history, it
must keep an eye on the factors that might cause problems. In this report SWOT analysis
for McDonald's is highlighted each of the company's strengths, weaknesses,
opportunities, and threats are discussed which the company faces in the market.
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
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.  

References

Annual Report (2020). Available at:

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(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-
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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”.
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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

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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/.