individual assignment module marketing title marketing strategies of mcdonalds

McDonald''''s, known as a global fast-food giant, has established itself not only as a purveyor of quickmeals but as a master in the art of marketing.. The success of McDonald''''s marketing s

MINISTRY OF EDUCATION AND TRAINING

FPT UNIVERSITY

DEPARTMENT OF MULTIMEDIA COMMUNICATION

- 🙞 🕮 🙟

-INDIVIDUAL ASSIGNMENTMODULE: MARKETING

MARKETING STRATEGIES OF MCDONALD’S

Lecturer : DƯƠNG QUỲNH MAISubject Code : MKT101

Group Class : MC1905

Student Name : ĐẶNG THU QUYÊNStudent ID : HS190388

HA NOI – 08/03/2024

2.Vision and Mission 5

II MCDONALD’S MARKETING ENVIRONMENT 5

Dear my lecture,

My name is DANG THU QUYEN, a 20-year-old dedicated university student major in Multimedia Communication at FPT university I was born and raised in Ha Noi city However, when I turned 7, my family moved to the suburb since the land was still wild and vacant with only gravel and wildlife existing.Over two decades, my parents and I have developed a retreat & homestay chain called “MEDIHOME” while the rustic charm and natural sense here have been well nurtured and preserved.

The reason i have chosen to major in Multimedia Communication is to explore the intricate intersections of technology, communication, and digital engagement As a student, I am committed to acquiring a comprehensive understanding of the evolving landscape of social media, recognizing its pivotal role in shaping contemporary communication and fostering connections across diverse communities Through my academic journey at FPT University, I aim to not only gain theoretical knowledge but also cultivate practical skills that will empower me to contribute meaningfully to the ever-expanding realm of social media

At FPT, I also had a chance to learn Marketing lesson (MKT 101) from a respectable lecture - DuongQuynh Mai Throughout her course, I have been taught about key concepts such as market research,consumer behavior, branding, and the ever-evolving landscape of digital marketing This lesson hashelped me not only to understand the theoretical foundations but also to equip with the skills necessaryfor strategic marketing decision-making

After all, I feel extremely grateful to be my parents’ daughter, to be embraced by unconditional love andinvaluable lessons.

As a student, it is my duty to express my gratitude to all the individuals and institutions whosecontribution is undeniable in completing my final individual assignment at MKT101 course.

First and foremost, I extend my deepest appreciation to my lecture, Duong Quynh Mai, for herunwavering support, invaluable guidance, and constructive feedback throughout the entire researchprocess Her expertise and commitment significantly enriched the quality of this essay.

I am also thankful to my classmates for providing the necessary resources and facilities that facilitated theresearch endeavor The assistance and cooperation of my friends and fellow researchers have beeninstrumental in shaping the ideas presented in this essay.

Thank you all for your contributions, encouragement, and support!

PROBLEM STATEMENT

2

McDonald's, known as a global fast-food giant, has established itself not only as a purveyor of quickmeals but as a master in the art of marketing The success of McDonald's marketing strategies can beattributed to its adept navigation of both microenvironment and macroenvironment factors Besides, themarketing mix employed by McDonald's as well as its creative promotional campaigns also contributes tooverall brand’s successful marketing.

In this final assignment, some fundamental information of McDonald’s will be analyzed to understandhow it has sustained its global influence and brand resonance In my exploration, I will scrutinize howMcDonald's adeptly manages its microenvironment, fostering relationships with suppliers, distributors,and customers Simultaneously, I will analyze its response to macroenvironmental factors such ascultural, political and demographic environment The examination extends to the marketing mix,dissecting how product offerings, pricing strategies, global placement, and promotional endeavorssynergize to create a compelling brand experience Finally, my focus shifts to the unforgettable "Followthe Arches" campaign, unraveling the brilliance behind its conception and execution

ASSIGNMENT BODY

McDonald’s Corporation (or McDonald’s) is one of the world’s largest and most recognized fast-foodchains, founded in 1940 as a restaurant operated by Siblings Richard and Maurice McDonald, in SanBernardino, California, United States It has been known for its hamburgers, French fries, name-brandsandwiches such as the Big Mac, Quarter Pounder, Egg McMuffin, and the child-focused Happy Meal.McDonald's has over 80 years of history to become an international business with locations in most of theworld's countries On May 15, 1940, in California, the McDonald brothers revolutionized restaurants,marking the first McDonald's opened During the same decade, the brothers pioneered rebranding as ahamburger and milkshake shop, the same as what would become today's fast-food system.

Replica of Ray Kroc's first McDonald's restaurant (Source: Internet)

Ditching a complex menu, McDonald’s focused on speedy service and affordability, selling just burgers,fries, and shakes This innovative drive-in, with its focus on efficiency, became the blueprint forMcDonald's In 1955, businessman Ray Kroc impressed by their concept and bought the franchisee rightsto McDonald's, sparking rapid expansion The iconic menu items like the Big Mac and Ronald McDonaldthe mascot solidified brand recognition

McDonald's global dominance grew as it adapted its menu to conquer international markets It has beenconsidered that McDonald’s has become one of the most successful brands in marketing history From itsmodest beginnings in the 1940s as a California drive-in to golden arches across the world, McDonald’shas undergone several transformative eras marked by pioneering innovations, milestones, and periods ofcontroversy.

2 Vision and Mission

McDonald's aspires to be the world's favorite "place and way to eat and drink" This mission statementreflects their desire to be a go-to destination for convenient and enjoyable meals Moreover, McDonald'svision emphasizes continuous growth and improvement They strive to become an "even betterMcDonald's", serving more customers delicious food globally and operating with efficiency

4

In essence, McDonald's mission is to win customers' hearts, while its vision is to achieve global fast-fooddominance through innovation and customer satisfaction McDonald's Vietnam is committed to follow thestandards of McDonald's global: Quality, Service, Cleanliness & Values

The marketing environment of McDonald’s consists of a microenvironment and a macroenvironment.The microenvironment consists of the actors close to the company that affect its ability to serve itscustomers like the company, suppliers, marketing intermediaries, customer markets, competitors, and thepublic The macroenvironment consists of the larger societal forces that affect the microenvironment suchas demographic, economic, natural, technological, political, and cultural forces (Principles of Marketing,pp.67)

Employee satisfaction impacts service quality and customer experience Innovation through menudevelopment and technology adoption keeps McDonald's relevant and competitive By effectivelymanaging these internal factors, McDonald's can maintain a strong foundation for its global operations.Beyond the established brand elements and marketing strategies, McDonald's marketing effectivenesssignificantly relies on the contributions of its managers They set the overall marketing direction andobjectives aligned with the company's vision, which focused on brand awareness, customer acquisition, orsales growth, and guided specific marketing initiatives.

While McDonald's marketing strategy focuses on reaching consumers, the role of suppliers is often anunseen but critical factor This includes companies that provide McDonald's with ingredients, equipment,packaging, and other necessities Reliable suppliers who can deliver high-quality products at competitiveprices are crucial for McDonald's success.

Supplier managers ensure the quality and safety of ingredients, which directly impacts the taste andexperience customers have with McDonald's products Moreover, partnering with suppliers who prioritizeresponsible sourcing practices allows McDonald's to integrate sustainability into their marketing message,resonating with environmentally conscious consumers.

Keystone Foods supplies McDonald’s chicken nuggets (Source: Internet)

The suppliers for McDonald's restaurants are called the first layer of suppliers, the suppliers for the firstsuppliers are called the second layer of suppliers and so on For example, in the European market, Coca-Cola is the second layer of suppliers because Coca-Cola supplies goods to Keystone distributors - thecompany is considered the first supplier to supply to McDonald's products Other second-tier supplierssuch as Sun Valley and Moy Park - chicken suppliers, Esca - beef suppliers

MARKETING INTERMEDIARIES

Marketing intermediaries help the company promote, sell, and distribute its products to final buyers.McDonald's, as a global fast-food giant, relies heavily on a network of marketing intermediaries to reachits target audience and successfully execute its marketing strategies

McDonald’s Franchising (Source: Internet)

First, franchisees operate a significant portion of McDonald's restaurants, maintaining brand consistencyacross various locations Second advertising and media agencies partner, with McDonald's marketingteams to develop creative concepts, design compelling advertisements, and select the most effectivemedia channels for campaign execution Third distribution and logistics partners, ensure thatMcDonald's products reach restaurants efficiently and on time, so as to maintain a reliable supply chain,optimize logistics, and ensure product availability across all locations

6

McDonald's marketing is intricately influenced by diverse customer market factors Consumer Markets isthe primary market for McDonald's, encompassing individuals and families who purchase their fooditems for personal consumption McDonald's segments this market further based on demographics,psychographics, and behavior

- Families with Young Children: The Happy Meal, with its iconic toys, targets families with

young children This caters to their needs for convenient, kid-friendly options and creates apositive brand association for the whole family.

- Value-Conscious Consumers: McDonald's positions itself as an affordable option, offering

value meals, dollar menus, and frequent promotions This caters to budget-conscious customersseeking a quick and economical meal.

- Tech-Savvy Consumers: With the rise of mobile technology, McDonald's has embraced online

ordering and delivery services This caters to customers who prefer the convenience of orderingfrom home or on the go.

- Health-Conscious Consumers: While McDonald's core menu caters to convenience, they also

offer options like salads and wraps This caters to customers seeking healthier choices withoutsacrificing the convenience factor.

The fast-food industry has become a fertile land for entrepreneurs to jump into, so this industry is highlycompetitive McDonald's faces a multitude of competitors such as other major chains, regionalrestaurants, and even convenience stores offering prepared food These competitors' actions and strategiescan significantly impact McDonald's in various ways.

In the US market, some famous names considered McDonald's main competitors such as Burger King,Wendy's, KFC… Among them, is Burger King Corp., the world's second-largest fast food serviceprovider (after McDonald's), which was established in 1954 in the suburbs of Miami City (Florida State -USA)

(Source: Internet)

In addition, when McDonald’s expands into international markets, it will encounter competitors right inthose countries - local food For example, when entering the Italian market, McDonald’s has to facetraditional Italian dishes like Pizza; or the Canadian fast food retail chain Tim Hortons (with more than3000 stores in Canada and several stores in other countries) In the Asian market, McDonald’s must alsopay attention to brands such as the Philippine Jollibee store system, the KFC, or the Korean Lotteria chainof stores Additionally, in Vietnam, there is Banh mi - quickly served and delicious A loaf of bread filledwith fillings can be delivered to the user in just 2 minutes, whereas a piece of fried chicken or a portion ofpotatoes takes 6-7 minutes.

McDonald's image and reputation play a big role in customer perception Public concerns about health,sustainability, and labor practices can all affect McDonald's business By understanding and navigatingthe media environment effectively, McDonald's can achieve its marketing goals and maintain a strongbrand image in the ever-evolving media landscape.

2 The macroenvironment

The macroenvironment of McDonald's encompasses the broader external forces that influence the entirefast-food industry, impacting McDonald's operations and success Here's a breakdown of some keymacroenvironmental factors:

McDonald's target market is worldwide and serves a wide range of age groups, from kids to senior adults.Catering to diverse demographics requires targeted campaigns McDonald's employs various strategies,such as Happy Meals for families, McCafé beverages and late-night options for young adults, valuemenus for budget-conscious consumers, and drive-thrust as well as quick service for busy professionals

(Source: Internet)8

Based on statistics from 2021, the typical customer is a married white lady between the ages of 41 and 56who really enjoys McDonald's breakfast( Mary Meisenzahl, 2021) Families with lower to intermediateincomes make up the majority of the customers of McDonald's in both urban and rural areas They aredevoted customers, coming to a McDonald's on average 44 times a year.

Moreover, McDonald's local adaptations further expand their reach, catering to diverse tastes in differentregions This broad demographic strategy, encompassing families, young adults, value-seekers, busyprofessionals, and local communities, ensures there's something for nearly everyone.

The economic environment presents both opportunities and challenges for McDonald's A strongeconomy leads to increased consumer spending, benefiting McDonald's Conversely, economicdownturns can lead to customers seeking cheaper alternatives or cutting back on eating out In addition,rising food and labor costs can threaten McDonald's profit margins Currency fluctuations add anotherlayer of complexity, impacting ingredient costs and profitability across their global empire

In Vietnam, the initial price that McDonald's uses in our market is the price they use in the US, which isabout $4 - $5 for a meal, this cost is quite high compared to the income level of an ordinary employee.This is not suitable for the daily spending of a Vietnamese person And the majority of Vietnamesepeople have the mindset that "Restaurants from abroad have higher prices than domestic food" "InVietnam, we have bread sold on the street The price of bread is much lower than Burger King orMcDonald's." (Andrea Nguyen, CNBC)

NATURAL ENVIRONMENT

McDonald's is indirectly impacted by natural environment Sustainability concerns play a major role.Consumers demand eco-friendly practices, pressuring McDonald's to source ingredients sustainably andminimize packaging waste Climate change also disrupts food production, potentially impacting menuoptions and raising prices To thrive, McDonald's must prioritize sustainable practices throughout itssupply chain and adapt to climate realities, ensuring a healthy environment for long-term success.However, in past incidents, McDonald’s has faced criticism for utilizing non-biodegradable materials fortheir drink cups The corporation has also come under fire from certain environmentalists for employingStyrofoam food containers and packaging products made of polystyrene For the sake of the environment,it is strongly discouraged.