INDIVIDUAL ASSIGNMENT

Name: Nguyễn Thị Khánh Linh

Student ID: HS180656
Major: Hotel Management
Class: HMO1901
Lecturer: Mai ĐQ
Submission date: 8/3/2024

– Hanoi, March 2024 –

 TABLE OF CONTENTS

I. Introduction.................................................................................................................................01

II. Problem Statement or Question………………………………………………………… .…02

III.Assignment body. ……………………………………………………………………..…(03 -07)

3.1 Microenvironment……………………………………………………………..………..03

3.2 Macroenvironment …………………………………………………………………..…04

3.3 4Ps of Mc Donald’s (About its price, place, promotion, product )...............................05

3.4 One most successful marketing campaign of Mc …………………………………..…06

VI. Conclusion…………………………………………………………………………………….07

References…………………………………………………………………………………..……08
 I. INTRODUCTION

McDonald's is a leading global foodservice retailer, with more than 35,000 local restaurants in more than
118 countries. They are committed to providing high-quality food and superior service at great value in a
clean and friendly environment. McDonald's mission is to be customers' favorite place and way to eat,
offering exciting experiences and dishes like French Fries, Big Macs, and Chicken McNuggets.

Brand Vision and Ambition: McDonald's prides itself on serving delicious food of the best quality. This
restaurant selects its suppliers and adheres to strict standards to ensure the quality of its ingredients. They
provide training and career development opportunities for staff, while also caring for the community and
doing activities that are good for children and families.

Brand Mission: McDonald's aims to be the best restaurant with a memorable customer experience. They
are committed to providing high-quality food such as French Fries, Big Macs, and Chicken McNuggets.
McDonald's adheres to global standards for quality, service, a clean environment, and great value for
customers.

II. PROBLEM STATEMENT OR QUESTION

McDonald's is a global fast food chain with over 36,000 restaurants in 118 countries, serving over 70
million customers daily. It was founded in the late 1940s and quickly grew to become the largest
 fast-food chain in the US. In 2014, McDonald's entered the Vietnamese market and currently, operates 17
restaurants with a growth rate of 40% per year. This report analyzes McDonald's marketing
environments, including the micro and macro environments, the 4Ps of marketing, and marketing

campaigns to attract more customers.

III. ASSIGNMENT

3.1 Microenvironment analysis:

The microenvironment includes internal forces that have an internal impact on the company's
operations and systematic operations. These internal forces are suppliers, customers, competitors,
intermediaries, and the public.

Own suppliers: have healthy relationships and treat them professionally. McDonald's
separates its suppliers into two divisions, i.e. direct and indirect suppliers. Indirect involves people
delivering ingredients to people directly and ultimately the direct supplier that produces the food
for McDonald's. From there, it brings the highest output efficiency for the company. Marketing
intermediaries include marketing service agents, financial intermediaries, physical distribution
companies, etc. All are involved in the company to sell, promote, and distribute products to the
final buyers. A reseller is someone who holds and sells a company's products. They match
distribution with customers and include locations such as Wal-Mart, Target, and Best Buy.
Physical distribution companies are places such as warehouses that store and transport a
company's products from the point of origin to the point of consumption. Marketing service
agencies are companies that provide services such as conducting research, Financial Intermediaries
are organizations such as banks, credit unions, and insurance companies. , advertising and
consulting, etc.

Customers of McDonald's include children, teenagers, families, and the elderly. The world's
leading food service serving around 329 million people in the UK serves millions of customers
every day. It has recognized the growing trend in the quick service restaurant industry, providing
accurate and timely service to its customers and providing the utmost satisfaction to every
customer.
 Competitors Today, the business world is increasingly competitive and it is difficult to survive.
McDonald's also has competitors such as Burger King, Chipotle, Wendy's, Shake Shack, KFC,
Chick-Fil-A, Subway, Dunkin Donuts, Panera Bread, Starbucks, Pizza Hut, Hungry Jacks, etc. has
its own status, brand, long-term business capital and high stock market value, which is strong
evidence to compete with McDonald's. Consumers are gradually becoming more concerned about
their health. Since the COVID-19 pandemic, many people are switching to a healthier diet. This
change in eating habits could affect the profits of companies in the fast food sector. If McDonald's
wants to keep its current market share, it has to start offering better options in its menu. For
example, McDonald's establishments in India decided to stop selling beef products in India
because people here consider cattle to be sacred mascots, or the brand added rice to the menu in
some European countries. ASIAN. That will help the company compete with other domestic
brands

The public plays an important role in McDonald's microenvironment. Customers,

communities, investors, and other stakeholders can influence a company's image and its business
success. McDonald's must meet customer expectations and needs, consider the impact on the
community, take care of investors, and manage public relations. Compliance with environmental
standards and social responsibility is also an important factor.

3.2 Macroenvironment analysis:

The PESTLE analysis in the figure below shows the influence of the external environment
on MC Donald's, helping the company find ways to effectively interact with those influences.

Political environment: McDonald's has stores in 119 countries, and the political
environment of these countries has a great influence on the company's operations ( Craft, 2020 ).
For example, India's political environment is unstable, due to which terrorism, Naxalism, religious
violence, and caste-related grievances are created in the country (Mitra and Ray, 2014). As a
result, people cannot live a normal life and live in fear, due to which MC Donald's sales in India
decreased. It harms the company's profit level.

Economic environment: Economic factors of the host country have a great influence on
MC Donald's. For example, the United States is one of the most financially stable countries and its
average capital income is 54541.70 ( Trade Economics, 2020 ). It shows that people's higher
financial capacity has helped MC McDonald's have the ability to generate the highest profits for
the country. Because of people's financial ability, they can buy food from McDonald's at a higher
price, so they have high profits.

Socio-cultural environment: Social beliefs, culture, etc., socio-cultural factors influence

MC Donald's sales. For example, increasing people's health awareness is reducing people's interest
in fast food. Therefore, health-conscious people will avoid MC Donald's, which reduces its sales
worldwide. As a result, profit levels decrease.

Technological environment: Technological advancement also plays a prominent role in

promoting MC Donald's development. For example, the company has developed MC Donald's
App through which the company informs customers about their offers and people place orders
online. That has helped MC Donald's increase sales a lot.

Legal environment: McDonald's must maintain all rules and regulations of the host country,
otherwise the company will have to compensate if it violates the regulations. For example,
McDonald's had to pay $26 million for stealing employees' overtime pay (Business Insider, 2019).
The employee took action against the company and they were forced to pay to resolve the issue.

Ecological environment: MC Donald's must take environmentally friendly actions to

reduce environmental pollution occurring due to its operations. For example, McDonald's has
taken steps to reduce the carbon emissions generated by its restaurants by approximately 36% by
2030 (Global Citizen, 2018).

3.3 4Ps of McDonald’s (About its price, place, promotion, product)

3.3.1. Product

McDonald's original goal was to aim for a standardized menu of fast food dishes with the
same quality and taste, regardless of location. But then McDonald's realized that slightly adjusting
the flavors and ingredients in each locality would help the company be much more successful. For
example, in Israel, some Big Macs are not buttered, to separate meat products and dairy products
according to the diets of many customers. Along with local changes, a team of McDonald's Quality
Assurance staff was also formed to maintain food standards on a global scale.
 3.3.2 Place - Location

McDonald's always focuses on cost management, strictly controlling business development

with careful and strategic expansion plans. In the US, McDonald's used to grow at a rate of
300-400 restaurants per year to create distance between them and their competitors. In its strategies
to eliminate competitors, McDonald's opened more restaurants than other restaurants even when
the fast food industry was in decline. This method will force competitors to become McDonald's is
a "child" if it wants to survive instead of running its own risky independent business. Once again,
we see the integration of global and local strategies.

3.3.3. Price

McDonald's overall goal is to continuously increase market share. In this case, the focus of
the company is on localization plans with different strategies in each country. Price is a factor that
is difficult to standardize globally because the income of consumers in each country is different
depending on that country's economy. Therefore, McDonald's sets different prices for their fast
foods based on analysis and research in each country.

3.3.4. Promotion - Business promotion

McDonald's tries to localize its marketing programs as much as possible because it realizes
that it will not be possible to attract customers everywhere with just one general method.
McDonald's clearly sees the need to "build a global brand, act on local marketing". For example, in
China, McDonald's realized that television advertising would be a waste of money, as these acts
were often overlooked. Instead, McDonald's uses the press to promote its image. Similarly, in East
Asia, McDonald's targets children to get the most optimal results. Of course, the final
brand/message is the same, they just differ in a cleverly adjusted approach.

3.3.5. People - Human resources

McDonald's relies on a blend of American human resources with local employees who are
well-trained according to global standards. The number of McDonald's employees is up to millions
and on average doubles every 5-7 years . Therefore, although there are always questions about
human resources that McDonald's must answer, such as how will labor laws impact? How many
local employees is enough? Will cultural barriers arise?..., but that does not diminish the close links
with the local workforce in McDonald's global business strategies.

3.3.6. Process.

McDonald's fast food production process is identical at all stores around the world - a
miniature image of globalization. The standards must be met everywhere and ensure high
specificity. For example, fried meat must have a diameter of 75mm, and raw material suppliers
must also meet many strict requirements...

3.3.7. Physical - According to the laws of nature

Although the media used in marketing can vary widely, McDonald's consistently delivers the
same message at all of its franchised restaurants around the world. In 1994, McDonald's changed
its business logo to "There's nothing quite like a McDonald's - There's Nothing Like McDonald's"
to reach a wider audience. This is another example of strengthening McDonald's image as a global
brand.

McDonald's public relations activities mainly focus on sponsoring major sporting events,
especially the Olympic Games and the Football World Cup. When the World Cup was held in the
US in 1994, McDonald's was the first sponsor and official food supplier for the biggest sporting
event on the planet. After that, McDonald's continued to be a sponsor of the World Cup in 1998 in
France, 2017 in Korea and Japan, and 2021 in Germany. The company had to pay about 20 million
pounds for the right to use the official logo of this event. But this is also an opportunity for
McDonald's to conduct global image promotion campaigns. With nearly two billion people
watching World Cup soccer matches, McDonald's message is easily conveyed to every country.
McDonald's doesn't just promote monastic names

3.3.8 One most successful marketing campaign With Lovin ‘’

McDonald USA, embraced an opportunity to connect with its customers through an in-store
program designed to provoke delight and continued loyalty. They did this by randomly selecting
customers between February 2- 14 and offering random customers the chance to 'Pay With Lovin','
which was showcased in a SuperBowl ad created by Leo Burnett. Says Deborah Wahl, chief
marketing officer for McDonald's: " Pay With Lovin' is a direct way for us to engage with our
 customers. We believe that a little more Lovin' can change a lot." After an order has been placed, a
guest service manager will inform the customer that he or she can pay with an act of Lovin', which
could range from a friendly fist bump, a call to a loved one. "There's a lot that goes on in the
world and if a brand like ours can provide good moments that provide delight, that's what we
should be doing for our customers," Ms. Wahl adds. Naturally, McDonald's counted on customers
to share their Lovin' experiences through social media channels.

IV.REFERENCES

1. Lott, E. (2023, January 19). 8 McDonald’s marketing campaigns that get our approval.
Filestage.io.

https://filestage.io/blog/best-mcdonalds-marketing-campaigns/
2. Macro and Micro Environment of McDonald’s
https://www.articlesfactory.com/articles/business/macro-and-micro-environment-of-mcdonalds.
htm

3 By Aditya ShastriIn-Depth McDonald’s Marketing Case Study – I’m Lovin’ It Already.

https://iide.co/case-studies/mcdonalds-marketing-strategy/

4 M RAHMAN -Marketing hỗn hợp của McDonald's (7Ps của McDonald's)

https://www.howandwhat.net/marketing-mix-mcdonalds-mcdonalds-marketing-mix/

5 OCTOBER 29, 2023 BY PAULINE MEYER - McDonald’s Marketing Mix (4P) Analysis

https://panmore.com/mcdonalds-marketing-mix-4ps-analysis