Marketing Mix Analysis of Fast Food

This assignment requires a comprehensive analysis of the marketing mix strategies employed by fast-food companies, particularly focusing on brands such as McDonald's. Students need to delve into each element of the marketing mix: Product (menu items, quality), Price (pricing strategies, value for money), Place (distribution channels, restaurant locations), Promotion (advertising, branding), and People (customer service, employee training). The analysis should draw upon relevant theories and frameworks, real-world examples, and potentially include a competitive analysis.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different role and responsibility related to marketing function.............................................1
P2 Different role and responsibility of marketing linked to McDonald's...................................4
D1 Different elements of marketing function.............................................................................6
TASK 2 ...........................................................................................................................................6
P3 Comparing Marketing mix of McDonald's and ALDI...........................................................6
P4 Marketing plan for Mc Donald's :..........................................................................................9
D2 Strategic marketing plan :...................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing activities are important task that had to be considered by every business
organisations. They are beneficial in order to increase the performances of organisations and to
attract large group of customers towards there products and services. These activities are linked
with exchange of products and services at market place. It is related with research activities
which includes advertisement and marketing (Aaboud, 2017). The Marketing mix are the
important task that helps in launching a new products. McDonald's is a fast food chain who are
offering there services all around the globe. There are different outlets of selected organisation.
Brand loyalty is maintained by the firms by providing quality food services to there customers.
This report comprises of various activities which are considered by selected organisation in order
to promote there brand by creating awareness. Different activities to promote the products
includes sales promotion, advertisement, personal selling and public relations tools. Comparative
study is done between McDonald and Aldi. Different functional areas and marketing plans which
are linked with McDonald's.
TASK 1
P1 Different role and responsibility related to marketing function
Marketing: It is a process where buyers and sellers interact with each other at market
place in order to buy or sell their products and services. Awareness should be created in order to
promote their products and raise their performances. This can be achieved with the help of
marketing tool. This process is helpful in increasing number of customers who can use their
products and services.
This process includes:
Identifying, selecting and developing the products according to needs and wants of there
customers.
Selection of the appropriate pricing strategies.
The appropriate distribution channels should be selected in order to make easy
convenience for customers.
Various promotional strategies should be developed in order to promote their products.
According to Kotler It was examined that marketing tools helps in creating good values for
customers and thus strong relationships are maintained in order to retain their potential
customers for long durations (Zikmund, 2015).
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Impact of external environment on marketing.
The external environment covers various aspects which are related with marketing of
goods and services. Various factors includes economical, technological, environmental, legal and
political aspects. If any changes are implemented in the social aspects than they had to be
considered in order to make effective marketing plans and strategies. Theses plans which are
related to marketing are adopted by cited firms and there impacts are evaluated on environment
factors. These factors if implemented are helpful in increasing the number of customers. There
are various technological developments that are taking plans at market place and these had to be
adopted in order to make effective strategies. These technological factors are helpful in success
of firms and in-turn achieving there growth and development (Aad, 2012).
Marketing process includes the following aspects as:
Situation Analysis: It is linked with the internal and external environment where business
activities are carried out. It consist of past, present and future aspects that influences the
operation of company. The selected organisation should considered various aspects which
influences the operations of business.
Marketing Strategy: These strategies are helpful in identifying the needs and wants of there
customers. Various plans which are linked with strategies are made in order to give stength and
capability to business.
Marketing mix decisions: In this process decisions which are related with tactics are made in
order to achieve different goals and objectives of firms. Various decisions are taken by the
company which are linked with product, price, distribution outlet and promotional act.
Implementation and control:
The company can make policies in order to make effective control over the actions taken
by company which are under there desired limits.
The role and responsibilities of marketing functions includes:
There are various functions which are executed by marketing activities thus these are
important functions for selected business (Thomas, 2015).
Distribution also called as channel management: It is an vital functions of business and they
should focus on building effective marketing plans and strategies. These distribution outlets
plays an important role in business operations. The selected firms adopt large number of
distribution channels in order to provide easy services to there customers in desired time frames.
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It is helpful in enhancing large number of customers and achieve there brand reputation at
market place.
(Source: Marketing Functions, 2017)
Products (Service management) It is helpful for the company to focus on those areas
which are helpful in enhancing the performances of the company. McDonald's provides
complimentary services with there products in order to increase footfalls of customers and satisfy
their differential needs. There should be effective complaint management systems in order to
solve the issues that are faced by the employees. It helps in providing effective services to there
customers (Al-Hasan, 2015).
Pricing: This is an important function of marketing. The selected firm should provide
those services to customers which are effective for them and are easily accepted by them.
Effective pricing strategies are helpful in achieving competitive advantages at market places.
Prices of products should be economical in order to attract large group of customers. It is
beneficial in increasing market shares of firms. The pricing strategies which are designed by
firms should be implemented after considering the strategies which are adopted by their
competitors.
Promotion: Various activities are organised by McDonald's in order to promote their
goods and services at market place. Different activities includes sales promotion, public relations
and online advertisement. They are mostly advertising there products on hoardings and banners
as most of the people notice them when they are travelling. These activities are helpful in
increasing profitability of firms by exploring their sales ratio (Mansour, 2016).
Selling: Marketing is a vital functions which are used by all business firm sin order to
increase there sales. This is refereed to as opportunities for development. Various tools and
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Illustration 1: Marketing
Function

techniques are used in order to identify the differential needs and wants of there customers. Thus
company can supply the products by analysing the demands in economy. Selling department is
important for firms as it helps in enhancing customers values and have impact on the sales ratios.
P2 Different role and responsibility of marketing linked to McDonald's
To achieve goals and objectives of firms they should focus on their marketing strategies
in order to achieve their targets. Different functions of marketing includes selling, MIM,
distribution, product and pricing strategies. This factors plays an important role in order to
increase growth of selected company at market place. Thus it results in increasing footfalls of
customers who can consume their products (Thomas, 2015).
In an organisation different departments are linked with each other. If there are any
changes in the company than they should be effectively communicated to all the departments so
that there workings are not affected. The marketing strategies which are adopted by firms are
helpful in increasing there market shares. Competitive advantages can be achieved with the help
of various strategies which includes economical prices, creation of brand loyalty and product
strategy with the help of substitutes. Brand images can be retained with the help of adopting
economical price strategy and tools and techniques which are related with advertisement.
All the functional departments of selected firms are linked with each other so that they
maintain coordination in order to carry out there business operations successfully. If any
technique is adopted for marketing of products than it should be conveyed to all the departments.
Different functions which are related with Marketing, Human Resources, Finances, IT should be
considered by firms. If any activity are conducted to give advertisement on social networking
site than they had to take help from the IT departments in order to implement effective strategies.
The finance department plays an important functions as if any activities are carried out by
marketing department than they had to arrange funds from finance department so that they does
not face nay difficulty while arranging funds for business process (Zikmund, 2015).
Marketing and HR Department
The marketing departments are interlinked with the HR department because if the
selected business wanted to carry out any marketing activities than they had to consult the
Human Resource department in order to make them available the necessary manpower that are
required for carrying out there different promotional activities. It helps in creating brand images
for there products. Various strategies are adopted by them like they had adopted online channels
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for promoting there products through advertisement, taking sponsorships of big companies and
workshops and seminars are also helpful in promoting there products by making people aware
about there products.
Marketing activities greatly affect the activities of all departments. If the company wants
to organise different task than they had to consult with the finance and HR department than it
also impact other functional department of firms. Various sectors had to be considered which are
related with finance, ICT, distribution Human Resources customers service and administration.
If any promotional campaign are adopted by McDonald's than they had to consult with the
finance department so that firms does not face any problems in future times.
(Source: Roles and responsibilities of marketing, 2017)
Different roles and Responsibility of marketing are described as:
Market Research- It is an important part of every business organisation. It helps the
company to find out high-grade opportunities that can be easily used by the selected
organisation. Marketing research are helpful in identifying the different needs of customers so
that best solutions can be provided to them.
Product Development: It is an essential part of business that had to be focused by
selected organisation. Company had to analyse the aspects where improvements are needed so it
cannot affect the business operations in future times (Harris, 2014).
Communication: Effective communications plans should be adopted in order to give
information to customers in relation to there goods and services. Different methods are
developed by which company can communicate their message. Marketing practices which are
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Illustration 2: Roles and responsibilities
of marketing

adopted by McDonald's includes advertisement, social website, leaflet, brochures, emailing,
company websites etc.
Market Segment: This function helps the company to select their target markets as the
markets are divided according to different geographical locations. It includes various segments
like demographic, geographic, psycho graphic and behavioural aspects. The cited firm is
focusing on every individual and they are mostly selling their products on the basis of
demographic aspects where markets are divided according to age groups.
D1 Different elements of marketing function
The key functions included in the marketing plans of the business are product, price, place and
promotion. According to Harris (2013) The functional units of the business includes finance and
accounts, human resources, customer services, administration and IT support, marketing and
sales, research and development, and product operations. McDonald relates its functional units
with the elements by determining their prices on the basis of customer needs and services
provided to them. Promotional activities with their marketing and sales. Innovation in products
like developing new products menu with their product operations, etc.
TASK 2
P3 Comparing Marketing mix of McDonald's and ALDI
Marketing mix is related with using tools and techniques which are effective when new
or innovative products are developed at market places. All the task are linked with each other at
work places and thus it is also known as integrated marketing process.
The 7 PS of marketing includes:
McDonald's is the largest chain stores which are dealing in fast food industries. They had
there outlets all around the globe. Thus they are beneficial in serving the needs and demands of
different group of customers (Medury, 2013).
Marketing Mix of McDonald's include:
Product: The selected company had there operations in fast food services all around the
world. They are serving the needs of all age groups. They are dealing in veg and non veg food
products which includes chicken burger, hamburgers etc. They provide high quality products to
their customers thus they had maintained their brand images. They had designed different
department for cooking food products by use of different equipments as they are providing
quality food to their users (Medury, 2013).
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Price: The most difficult task for any firm is to set the prices of products economical so
that people can easily purchase them. The best pricing strategies should be adopted which attract
large group of people and company can earn huge profits. McDonald's is using pricing policies
related to cost leadership so that fast food can be offered to customers are economical prices.
Place: It is described as the distribution outlets from where goods and services can be
delivered to customers. Selected business is having there business operations in 131 countries
with more than 30,000 restaurants. They had adopted a strategy for establishing their operations
in both the urban and rural areas which is known as aggressive growth strategies. The choose
those places for there business which are mostly crowded or luxury areas like shopping malls,
colleges etc. The locations should be selected by keeping all the important factors in mind as
they helps in determining the profit ratios of firms.
Promotion: This factor relates to promoting there products at market places and
identification of there target customers. To create awareness where promotional tools are
adopted like sales promotion, public relations, personal selling etc. This can be achieved with the
helps of giving advertisement in newspapers, radios, television, internet etc. Different hoarding
and banners are designed in order to create awareness among people. They are mostly placed
near highways as people are mostly travelling from those places. Personal mails are also send to
their regular customers who had registered there numbers with McDonald's (Jain, 2014).
People: This factors plays a vital role in promotional mix. It consist of workers and
customers who will be buying the products which are offered by firms. If they are successful in
maintaining healthy relations with there customers that it will results in increase in profit ratios
for firms. There main aim is to hire those employees who had the potential to provide effective
services to their clients which can easily satisfy them. Workshop and training programmes can
be organised in order to make the employees aware about how services can be useful for firms in
order to retain their customers for long terms at work place. Most of the company have designed
dress code for there employees in order to maintain equality (Lane, 2014).
Process: It is the task which is related with the functional activities in order to make sure
that goods and services are delivered to customers on time. The products should contain quality
in order to maintain their brand values. If any organisation uses simple process than it will
provide convenience to customers in selecting the products according to there needs. In order to
attract customers they are using different packaging styles in order to make their products
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attractive. McDonald's gives opportunities to people to check the ingredients which are used in
food processing.
Physical evidence: It is related with the services that are offered by company which are
intangible and they cannot be touched by any persons. The customers are mainly focusing on
those outlets from where these goods are distributed. Thus this factor is linked with appearance
of stores which captures the attention of large group of customers. The physical location can be
made attractive by using bright wall paints, effective lightning and proper cleanness.
The Marketing mix of ALDI includes:
Product : ALDI have a wide range of their own specialized products which helped the
company in achieving strong customer base. It deals in products like food products, and
beverages, health and beauty products, clothes, stationery, electronic products, household goods
and soft tools. The company claims to provide affordable food products of same quality as of
other branded products at a price lower than other supermarkets. It eliminates unnecessary
packing and has their own recycling stations to dispose the cartons (Hoványi, 2013).
Price: being the company has a strong customer base, it follows the unit pricing
strategies for the grocery products which helps the customers in comparing it with other
products. It charges low prices for new products to penetrate the market and gain share quickly.
In high competition, the company also follows competitive pricing for making use of its
economies of scale, psychological pricing for considering minor difference in pricing and loss
leader pricing for selling the non grocery item at low price to attract the customer's attention.
Place : place is an important aspect as it determines how the products are brought to the
stores and where the products will be sold. ALDI group has wide network of stores. Its store
layout is simple and keep all its products in bulk purchased from its suppliers at local warehouse
ensuring the quality of the product is maintained, along with minimum waste disposal during
transportation. It also allows its customers to check its product details online and locate to the
nearest store (Kirby, 2012).
Promotion : the promotional activities of Aldi deals with every aspect of the strategy
which claims it to be cost effective. The company does not invests in the promotional activity but
provide offers to its customers and inform them through news letters by way of mails, handed in
stores or through newspapers. The company is strongly influenced by the technological
development resulting which it is now advertising on television. The company also uses
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strategies like swap and save to attract customers from other brands, build customer trust by
providing products at cheaper cost, etc.
People : ALDI has low customer service as it do not assist its customers in product
selection. The reason behind this is that it has different sections for different products which
reduces the requirement of employees. The company pays its employees at high rate and also
provides on the job training to its new employees. The employees of the company are friendly,
trained and acquire skill level for performing the job.
Process : the company does not keep high quality or nominally priced goods in order to
prevent its customers from confusion and the time consumed in selecting a product is also
reduced. In addition to this the company have large bar codes on products for quick identification
and convenience billing (Brownell, 2010).
Physical Evidence : the company had a standard of simplest business processes and
global pricing. The company stores items from home brand as well as renowned brands. It
provides cheaper products, and keeps low prices around the stores globally. The stores of the
company maintains the same prices for the groceries throughout the world (Lane, 2014).
P4 Marketing plan for Mc Donald's :
Overview
McDonald's is the largest growing American fast food restaurant chain. It is the worlds second
largest private employer after Walmart . It primarily sells hamburgers, chicken products, burgers,
breakfast items, soft drinks, wraps, desserts, etc. with the changing customers needs and
demands and their healthy taste the company gave expansion to their menu to healthy nature.
The company has expansion in the form of franchises, commercial entity and the company itself.
The sources of revenue for McDonald's corporation are rents, royalties, and fees paid by the
franchises and company operated restaurants (Harris, 2014).
Vision:
The brand vision of the company is to be the best quick service restaurant experience by
providing outstanding quality , service, cleanliness, and value to make every customer in every
restaurant smile.
Mission :
The brand mission of the company is to be the customer's first choice, when it comes to, top
quality products , outstanding services/ cleanness and great value for money.
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Marketing statement of McDonald :
McDonald adopt the strategy of franchise modelling, consistency in the product like product
taste and quality across the world and acting as retailer i.e. focusing on protecting the long term
brand reputation rather than only delivering sales for immediate customers. A major segment of
the company is operated by franchises. The company follows framework of training and
monitoring of its franchises to achieve its mission statements i.e. quality service, cleanness and
value for money. The company believe in providing services to the customers according to their
preference. They also consider customer's tastes, value systems, lifestyles, language and
perceptions worldwide (Lane, 2014).
SWOT
Strength :
Strong brand name and reputation:
The biggest strength of the company is its strong brand name and its reputation which helped the
company in attaining a position in the market.
Market share: the company the the largest fast food restaurant chain in the world including its
franchises which contributes in acquiring a large market share.
Innovative technology : the company is adopting new innovative technology along with the
changing technological era by providing free Wi-Fi to its visiting customers.
Weaknesses :
Cut throat competition : the company has cut throat competition in the market. With the strong
brand name it has competitors like Wendy's, burger king. This makes the company loose large
customers who prefer other brands (Wills, 2013).
Unbalance meals : The company tries to update its meals by healthy criteria with a wide range of
products but it goes unbalanced due to not including much amount of healthy components.
dissatisfied franchises: The franchises of the company are dissatisfied as the company is
increasing its fees for the purpose of expansion. As a result they are selling their businesses.
Opportunities :
Growing healthy trend : adding healthy components to its menu can create an opportunity for the
company to maintain its brand value and image.
Diversified customers : the range of diversified customers can also help the company in its
growth. It can cover and make the customers satisfied by formatting their services.
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Low cost menu : with low cost menu the company can attract customers with low income
covering a large market share.
Threats:
Economic recession : being the company's revenue streams are diversified, the recession has laid
negative impact on the services as the number of visitors has reduced their spending power.
Health crisis : the company is majorly affected by the health issues which overshadowed their
product offerings (Kirby, 2012).
Competitors of McDonald : (Graph)
The major competitors of McDonald in the fast food industry are burger king, domino's ,
Wendy's international, jack in the box , Yum brands, doctor's associates , and others.
(Source: Market share, 2017)
Market Segmentation and targeting :
The market segmenting and targeting strategy adopted by McDonald is on demographic
basis considering age as the basic parameter. The target segment of the company are youngsters,
children and urban families. For the children the company and its outlets provide toys and meals
together , young people prefer such places for entertainment and urban families select for
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Illustratio
n 3: Competitors of McDonald.

celebrating various occasions like birthday party celebration, treats, etc. most of the customers
are attracted by the company's pricing strategies like introducing combo meals at discounted
rates, happy price meals, etc. (Birks, 2013).
Budget :
The budget of the company is majorly acquired through its franchises and outlets. And
are invested in various marketing activities during strategic implementation. The company
spends the most on advertisements to attract customers. The department plans a budget and sends
it to the manger. In return the finance manager allot a certain rate budget to them for functioning.
Marketing Budget:
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 50000 14500 12400 13000 16000
Investment 19500 14200 15000 14000
Total 50000 34000 26600 28000 29000
Marketing
expenditures
Advertisement 5000 8000 5000 5000 6000
sales promotion 5000 3000 4000 5000 2000
Direct marketing 4000 5000 3000 3000 4000
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Total 14000 16000 12000 13000 12000
Available balance 36000 18000 14600 15000 17000
Monitoring and control :
The company while implementing its marketing budget after allotment, it becomes more
important to monitor and control it. This is possible only when there is regular control over the
finance during spending. Like if the company is spending more on advertisements, which is not
required then the waste of time and money should be controlled and appropriate measures should
be taken.
D2 Strategic marketing plan :
A strategic marketing plan includes combination of customer experience with the
directions of the company. It allows the company to adjust marketing strategies and the products
according to the needs of the customers. The company set their prices according to the levels of
the customers, products according to the taste , place in the easy reach of the customer,
promotion by spending lot on advertisement, covering large market of people, providing
maintenance of premises considering hygiene factor, quality delivery of product and using
transparent process of serving to customers along with packing and distribution (Malhotra,
2013).
CONCLUSION
As per the above report it has been concluded that marketing essential play an important
role in maximising growth and success for every business firm. Marketing mix is helpful in
developing a products at market place with so many new and innovative features. McDonald's is
famous for providing best and high quality services in respect of satisfying needs and wants of
their targeted customers. Internal and external factors are helpful in impacted on marketing
position of company. McDonald's use various tools and techniques for attaining competitive
advantage at market place. They use strategies to attract large number of buyers towards their
firm in order to maximise profit and revenue for company.
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