Unit 6: Marketing strategy
McDonalds is an organisation of high profile and carries out many marketing
activities.
a) For your chosen organisation, carry out a SWOT and a PESTLE analysis.
b) Explain which of these factors has the biggest impact on marketing
decisions and in what way.
McDonalds SWOT analysis
Strengths
McDonalds is worth loads. It is the number one in fast-food companies by sales, with more than
31,000 restaurants in almost 120 different countries. Sales of 2007 were 11, 4009 million which is
a 5.6% sales growth from the year before.
Good innovation and product development. It continually works towards keeping customers in the
business.
The McDonalds brand offers consumers choice, reasonable value and efficient service.
Large amounts of investment have been put into supporting the franchise network, 75% of stores
are franchises.
They have a loyal staff and strong management team.
Weaknesses
McDonalds haven’t really made a significant effort to start producing healthier food
and have received a lot of criticism because of this.
There are multiple quality issues from the franchise network.
Opportunities
McDonalds have joint ventures with retailers (e.g. supermarkets).
Possible move into healthier foods such as salads and sandwiches could be an option instead of
the standard cheese burger and chips.
McDonald could use CRM, database marketing to more accurately market to its consumer target
groups. It could identify likely customers (based on modelling and profiles of shoppers) and
prevent brand switching.
Strengthen its value proposition and offering, to encourage customers who visit coffee shops into
McDonalds.
The new “formats”, McCafe, having Wi-Fi internet links should help in attracting segments. Also
installing children’s play-parks and its focus on educating consumers about health, fitness.
International expansion into emerging markets of China and India. This will offer a lot of business
due to the dense population.
Threats
McDonalds is an organisation of high profile and carries out many marketing
activities.
a) For your chosen organisation, carry out a SWOT and a PESTLE analysis.
b) Explain which of these factors has the biggest impact on marketing
decisions and in what way.
McDonalds SWOT analysis
Strengths
McDonalds is worth loads. It is the number one in fast-food companies by sales, with more than
31,000 restaurants in almost 120 different countries. Sales of 2007 were 11, 4009 million which is
a 5.6% sales growth from the year before.
Good innovation and product development. It continually works towards keeping customers in the
business.
The McDonalds brand offers consumers choice, reasonable value and efficient service.
Large amounts of investment have been put into supporting the franchise network, 75% of stores
are franchises.
They have a loyal staff and strong management team.
Weaknesses
McDonalds haven’t really made a significant effort to start producing healthier food
and have received a lot of criticism because of this.
There are multiple quality issues from the franchise network.
Opportunities
McDonalds have joint ventures with retailers (e.g. supermarkets).
Possible move into healthier foods such as salads and sandwiches could be an option instead of
the standard cheese burger and chips.
McDonald could use CRM, database marketing to more accurately market to its consumer target
groups. It could identify likely customers (based on modelling and profiles of shoppers) and
prevent brand switching.
Strengthen its value proposition and offering, to encourage customers who visit coffee shops into
McDonalds.
The new “formats”, McCafe, having Wi-Fi internet links should help in attracting segments. Also
installing children’s play-parks and its focus on educating consumers about health, fitness.
International expansion into emerging markets of China and India. This will offer a lot of business
due to the dense population.
Threats
