McDonald's Sales Strategy for Success

The provided content discusses the Ansoff Matrix, which is a tool used to identify market opportunities and develop new products or services. The matrix shows that McDonald's can increase sales by targeting the right customers with the right products. The report also uses the PESTLE/STEEPLE analysis to classify segments based on geographic, demographic, psychographic, and behavioral characteristics. Additionally, the Boston Consulting Group (BCG) Matrix is used to analyze the financial status of the organization. The marketing strategies recommended include frequent communication with customers, customer loyalty programs, and special events. Finally, the report concludes that McDonald's can increase sales without making a loss using these models and matrices.

ISMM Model assignment U502 Understanding the integrated functions of sales and marketing-
Task 4
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“TASK -4: MARKETING AND SALES IN PRACTICE”
(A PROJECT REPORT)
(McDonald Inc. at Singapore)
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ISMM Model assignment U502 Understanding the integrated functions of sales and marketing-
Task 4
TABLE OF CONTENTS
Introduction........................................................................................................................................3
Marketing and Sales in Practice.........................................................................................................3
The Proposed strategy for sales:....................................................................................................3
Competitive advantage:..................................................................................................................3
Market analysis based on the market trends and competitor activity............................................4
Porter’s Five Forces Model........................................................................................................4
Ansoff Matrix.............................................................................................................................5
Benefits acquired by McDonald by addressing the requirements on the target market....................5
Estimated financial return for McDonald Corporation..................................................................6
Return upon Investment.................................................................................................................7
Marketing strategies and marketing plan for developing the positive relationships within the
sales team as well as the customers...............................................................................................8
Evaluation of the value for marketing with progressing sales.......................................................8
Conclusions........................................................................................................................................8
Reference List....................................................................................................................................9
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ISMM Model assignment U502 Understanding the integrated functions of sales and marketing-
Task 4
INTRODUCTION
This report focusses on the marketing strategy and behavior of the customer to improve the sales
for the organization. The organization is chosen here as McDonald Corporation as the global
business prospective and generates multiple products in Singapore market. The sections are
divided into sub segments for betterment in understanding the strategies for betterment in sales as
well as the profit generation.
MARKETING AND SALES IN PRACTICE
As a sales manager of the organization, the following points are taken care while doing the
marketing strategy for development of more effective sales strategy:
THE PROPOSED STRATEGY FOR SALES:
The market is the procedure by which the information is gathered about the market, customers as
well as competition. Through a market research one can know more about the people to whom the
product or service is sold, what is their preference , their need or want and most important how
they will act on observing the new product in the market.
The proposed strategy always includes the positioning statement that will always meet the target
market as positioning is an essential part of launching the product with the company within the
market. Some of the positioning query is like, “What is it?”, “What is does?”, “What does it
mean?” or “Why should be this taken care?” The answers are respectively the product, the benefit,
the effect or the motivation (MaRS DISCOVERY DISTRICT, 2013).
COMPETITIVE ADVANTAGE:
The sales and marketing practice is directly depending on the competitive advantage of the
product with respect to the others product of same category in the market. It is required to
maintain the buyer cost which is raised with buyer performance through the impact of the value
chain depending on the value chain of the buyers. It is also needed to implemented simultaneous
strategies for localization as well as the globalization of the global market. Many companies focus
on the market as well as the customers which has the real market orientation that involved within
more customer value for outstanding of the understanding with both the customers as well as the
competitors (Partners Creating Growth, 2013).
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ISMM Model assignment U502 Understanding the integrated functions of sales and marketing-
Task 4
MARKET ANALYSIS BASED ON THE MARKET TRENDS AND COMPETITOR ACTIVITY
PORTER’S FIVE FORCES MODEL
Source (Created by self)
The porter analysis is carrying out to know the market trends as well as the competitor activity.
According to this model, the following key points are analyzed, like
1) Objectives of the competitor,
2) Assumptions of the competitor,
3) Capabilities of the competitor and
4) Strategy of the competitor.
As the objectives of the competitor, it may be financial as well as non-financial. If the
organization focuses towards the short term goals, it may be an unsuccessful attempt while
lowering the price as the competitive strategy. So it is better to increase the customer base for
long term profits, which will be a better strategy for the organization.
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ISMM Model assignment U502 Understanding the integrated functions of sales and marketing-
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The assumptions are depending on the regional factors as well as the opinion of the
competitive position.
It is very important to acquire the knowledge about the strategy of the competitors through
their interviews, annual stakeholder’s reports, press release, statements to the mangers or the
10K reports etc. (Cleverism, 2016).
ANSOFF MATRIX
Through the Ansoff matrix or the product/market expansion grid, it can be easily realized the
growth of the organization in the long term basis and it also usually find the new ways to increase
the profits by reaching to new customers.
Ansoff Matrix
Source: (Cook, 2017)
Above is the diagrammatical view of Ansoff Matrix. Through Ansoff matrix, it has been
considered that the Burgers or the breakfasts to them who want in the morning, so for that
reason McDonald Corporation are allowed to open the store for longer time. For the new
development there are new products for existing customers like McCafe (MindTools, 2014).
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ISMM Model assignment U502 Understanding the integrated functions of sales and marketing-
Task 4
BENEFITS ACQUIRED BY MCDONALD BY ADDRESSING THE
REQUIREMENTS ON THE TARGET MARKET
According to ISMM preferred model, it is better to refer to the PESTLE or STEEPLE analysis to
know about the variables where the segmentations are classified as geographic, demographic,
psychographic, and behavioral as well as the customer type which is depending on the size of the
industry, or the position of the value chain.
It is also keep in mind that, the characteristics of market segmentation should be such as, the
segments are
1) Identifiable easily and also clearly.
2) Accessible through the promotion, distribution channels or the communication.
3) measureable
4) Appropriate for policies as well as the resources of the organization.
5) Different in the means of marketing mix.
6) Substantial enough for making profit (TIS Consulting Group, 2012).
ESTIMATED FINANCIAL RETURN FOR MCDONALD CORPORATION
For estimating the financial return of the basis of organization Pareto principle or the 80/20 rule
can be recommended to use for performing the segmentation on the basis of the customer as well
as the product based for the aim to calculate the profitability. In case of real Pareto law, it the large
affect i.e. 80% which is coming from the small number of causal factors i.e. 20% with two
numbers 80 as well as 20 which is referring to two different measurements (Deshpande, 2012).
As per Pareto’s rule:
1) the 80% profits may come from 20% of customers
2) 80% of product sales can come from 20% of products
3) again there may be 8% of sales for 20% of advertising
4) Also 80% of sales can be possible from 20% of the sales team
5) Finally, 8% of customer complaints can be from 20% of the customers (Chaffey, 2016).
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ISMM Model assignment U502 Understanding the integrated functions of sales and marketing-
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Source (Paret, 2012)
RETURN UPON INVESTMENT
Through Boston consulting Group or the BCG group it can be easy to know about the financial
status of the organization as per the relative market share with the market growth rate. Mainly for
multi products or multi category organization this matrix is more important to analyze the business
portfolio.
BCG Matrix
Source (Strategic Tookits, 2017)
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ISMM Model assignment U502 Understanding the integrated functions of sales and marketing-
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In this case the market growth rate and the relative market share are always gives the overview of
the completion as well as the industry’s standard return. Among the other competitors like KFC,
Pizza Hut, Subway, there is McDonald Corporation which is positioned as the Star in the BCG
matrix.
MARKETING STRATEGIES AND MARKETING PLAN FOR DEVELOPING THE POSITIVE
RELATIONSHIPS WITHIN THE SALES TEAM AS WELL AS THE CUSTOMERS
In this scenario, as a sales manager in McDonald Corporation, it is recommended to build up a
positive relationship with the customer. For that there are some strategies to build up the
relationship are as follows:
1. It is very important to maintain the frequent communication with the customers through
email, phone contact, or direct sms or through face-to-face communication for keeping the
prospects moving with the sales cycle.
2. There is needed to be generated some customer loyalty or the reward programs by offering
them those reward through direct selling.
3. Some special events can be sponsored so that there would be chance to interact with the
best customers of the organization.
4. Through a better customer service it can be regulate the business with positive word of
mouth and with increment of sales from the new customers as well (Gordon, 2004).
EVALUATION OF THE VALUE FOR MARKETING WITH PROGRESSING SALES
Through this report, it is evaluated the value for marketing for progressing sales for the
organization is considered here and the best possible evaluation method is recommended as the
balanced scorecard for the mapping out the performance objects where the organization wants to
reach as its goal and also what would be the estimation on behalf of the company within the three
or five years. It is best possible way to boost the sale’s performance by using balance scorecard
(Walter, 2017).
CONCLUSIONS
Therefore, from the above discussion, it is concluded that, there are several models, matrices,
statements through which McDonald can increase its sales without making any loss.
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ISMM Model assignment U502 Understanding the integrated functions of sales and marketing-
Task 4
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ISMM Model assignment U502 Understanding the integrated functions of sales and marketing-
Task 4
REFERENCE LIST
Chaffey, D. (2016, 06 24). Pareto’s 80:20 rule in Marketing. Retrieved from
https://www.smartinsights.com/:
https://www.smartinsights.com/marketing-planning/marketing-models/paretos-8020-rule-
marketing/
Cleverism. (2016, 11 07). How to Perform an Industrial Analysis and Competitor Analysis.
Retrieved from https://www.cleverism.com/: https://www.cleverism.com/industrial-
analysis-and-competitor-analysis/
Cook, W. (2017). Designing speech and language services for the future: getting started/moving
on Richard Guy Steven Harulow Tracey Dean Cathy Timothy Bryony Simpson Alison.
Retrieved from http://slideplayer.com/: http://slideplayer.com/slide/10463946/
Deshpande, B. (2012, 07 10). Applying Pareto 80 20 rule for product/customer segmentation
[VIDEO]. Retrieved from http://www.simafore.com/:
http://www.simafore.com/blog/bid/107118/Applying-Pareto-80-20-rule-for-product-
customer-segmentation-VIDEO
Gordon, K. (2004, 01 05). 7 Relationship-Building Strategies for Your Business. Retrieved from
https://www.entrepreneur.com/: https://www.entrepreneur.com/article/66228
ISMM. (2011). ISMM-Study-Guide-for-L5-U502-Understanding-the-Integrated-Functions-of-
Sales-and-Marketing.pdf. ISMM.
MaRS DISCOVERY DISTRICT. (2013, 06 12). Positioning: Creating an image of your product
in your target customer’s mind. Retrieved from https://www.marsdd.com/:
https://www.marsdd.com/mars-library/positioning-creating-an-image-of-your-product-in-
your-target-customers-mind/
MindTools. (2014). The Ansoff Matrix. Retrieved from https://www.mindtools.com/:
https://www.mindtools.com/pages/article/newTMC_90.htm
Paret, M. (2012, 08 29). Using a Pareto Chart: Fast Food and Identifying the Vital Few.
Retrieved from http://blog.minitab.com/: http://blog.minitab.com/blog/michelle-paret/fast-
food-and-identifying-the-vital-few
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