Marketing Research and Strategies

This assignment focuses on exploring the concepts of marketing research and strategies. It delves into different marketing theories and models, such as Keller's Brand Equity Model and SWOT analysis, highlighting their applications in understanding consumer behavior and developing effective marketing plans. The provided text encompasses a range of sources including textbooks and academic articles that contribute to a comprehensive understanding of key marketing principles.

Marketing case study:
McDonald

Table of Contents
Introduction......................................................................................................................................3
Part 1................................................................................................................................................3
Part 2................................................................................................................................................6
Part 3..............................................................................................................................................11
Conclusion: ...................................................................................................................................13
References .....................................................................................................................................14

Introduction
Marketing is a process of assessing the needs and demands of customers and then make
their product accordingly. If products are satisfying unmet needs of consumer then it helps
company to make their brand equity higher (Lovelock and Patterson, 2015). For this report,
McDonald is taken for consideration. It is one of the largest fast food chain in the world and
headquarters in Chicago USA. How company will opt different types of strategies to launch their
new product in the UK market will be discussed. Different marketing philosophies and
approaches will be elaborated with functional example. Environmental analysis of company will
be done with different techniques like pestle. Swot will be done so to find out the strengths and
weakness of company and how they can improve it to remain at the top of market. Different
theories will be used to explain different aspects of company like brand building, STP, shaping
the market and its offerings etc.
Part 1
Nowadays company's try to be on the top of market by applying different types of
concept so that they can provide better value for money to their customers. Due to which
company uses marketing concept, it is the strategy that companies used to identify the needs and
demand of customer. With the help of this they can implement this requirements of customers so
that they can gain a competitive advantage. Before explaining these concepts, two old
philosophies will be discussed i.e., conventional and contemporary.
Production concept:
The main concept of production defines that the consumers will choose that product in
market which is available easily and does not require too much cost to purchase. This is a basic
concept of marketing which is used by practitioners from past. With the help of producing
maximum units a business can grow itself in the market by availing recent products to its
customers. McDonald is using this concept to increase their quantity of product they are
producing as it is helping them to make their products available all the time in stores. Customers
prefers to eat those products which are already available in the store thus assist company to
deliver the value of money they are paying. (De Mooij, 2018) .

Product concept:
In this concept, main focus of organization is to provide better quality of product to its
customers. The quality of product should be innovative so that it would attract the customers
towards the company. In case of McDonald, company produces veg burger which is an
innovative product (Armstrong and et. al., 2015). McDonald uses this concept to make their
product according to customer needs and demands. With the help of this concept, company is
acquiring more customers in different countries as they are satisfying the unmet needs of
potential consumers.
Selling concept:
The selling concept states that the companies should focus on selling their product
whether the demand of customers is there or not. This concept also focus on increasing the sales
through marketing. In this concept, as the motive is to sell the product that's why company has
opened different stores in single cities so that they can capture each and every customer in UK.
For instance, McDonald has more than 200 stores all over world which depicts that their
distribution channel is better as compare to other organisation. More importantly they use Six
sigma and just in time approach to improve their time to serve their customers faster.
Marketing concept:
It is the concept of marketing strategies in which the focus on to integrate the
departments of organization to value for the customer. This strategy is applicable when the needs
of customers are fulfilled by organization (Babin and Zikmund, 2015). McDonald uses
combination of different marketing activities due to which they have acquired more customers
and market as compare to their other competitors. This helps company to improve their goodwill
in the mind of customers. For instance, McDonald launch various types of campaign in which
they take feedback from their customers and then modify their product accordingly. By regularly
communicating with their customers, they have made a favourable image in the mind of
customers. This also helps them while launching new product in the market.
Societal concept:
This concept is helpful in determining the needs, wants and interest of target market and
to deliver the desirable satisfaction to the customers more effectively and efficiently. This is

done to preserve customers and societies well being. This concepts helps company to prevent
environment on one side and satisfied customers on the other side. This is the reason McDonald
makes their product according to customer demands and monitoring its impact on natural
resources. McDonald has the largest customer base due to their strategy of using societal concept
in every product they offered. For instance, McDonald owns Ronald McDonald House
Charities(RMHC) which helps needy children to improve their health and well being.
Holistic marketing concept:
This concept has gained the popularity in the recent times as company focus is to create
favourable image in the mind of customers so to increase their sales and profit. This concept
states that every department in the company is interconnected to each other and working
conjointly to achieve the mission and vision of company (Scott, 2015). Different concepts are
explained below with functional example,
 Relationship marketing: Managing customer relationship marketing is the most
crucial part for every organisation. For the existence of every organisation in the
business market and competing with competitors and rivalries, it is necessary to build
good relations with customers and other people. It spells out that company should make
a strong relationships which contributes their part in the success of the organisation.
McDonald have good relationships with shareholders, vendors, employees, partners etc.
due to which any conflict between the partners or vendors have never arises. They
provide best quality of food to their customers and because of that they have been on the
top of market from many years.
 Integrated marketing: It shows that marketing mix should be properly managed and
align with the mission of the company. McDonald should plan their marketing mix after
analysing external and internal environment as it directly affects the profitability of
company. Company uses different type of marketing like advertising, viral marketing
etc due to which they have better image in the market as compare to other competitors.
(Armstrong and et. al., 2014).
 Internal marketing: It refers to selecting a candidates for the company so that they can
serve their customers professionally. It is important for company to improve the
customer engagement experiences as it directly affects the retention rate of customers.
McDonald employees and managers ensures that proper method and standards is used

while making the products, it motivates employees all the time while working and
provides better satisfaction to the employees.
 Performance marketing: It elaborates the returns which a business get from the
marketing activities they have done in the past. By satisfying the needs of the target
market, company will increase its sales and this will contribute in the overall revenue of
the organisation. Company is getting good ROI from their activities that's why
McDonald has strong balance sheet and has ample amounts of reserves in their account.
McDonald uses combination of internal and integrated marketing in their working operations as
it assist them to improve their brand image, efficiency, effectively and consistency while
working over time (Baker, 2016).
Marketing approaches:
Marketing approaches shows the understanding of market and in whole sense which
includes customers, wholesalers, sellers etc. Different approaches are given below,
Institutional approach:
In this approach, focus is given to the middleman which comes between company and
customers. Middleman includes exporters, importers, sales person etc. All the activities done by
middleman incurs some cost to the final product. That's why McDonald prefers to eliminate
middleman as much as they can. This approach shows that interrelations and interdependencies
between middleman and company.
Legal approach:
This approach shows the legal aspect of company which they should be follow to avoid
any legal issues which could be imposed by local government. There are many acts like safety
law, employment wages law, sales and good act etc which McDonald should considered at the
time of operating in different countries.
Market orientation
It refers to strategies in which company make their product according to the customer
needs and desires so that their sales of product will automatically increased. McDonald should
use this strategy as then only they can remain at the top of market.
Competitive orientation
It means that company focuses on competitors strategies and ignore customer needs and
demands. Main aim of implementing this strategy is to copy the competitors with little

differentiation so that company does not have to waste their time on creating new strategies.
McDonald must avoid this strategy as it will assist them in achieving short terms goals and won't
be able to achieve its long term plan.
Inter functional orientation
It is one of the essential approach in which combinations of different techniques are
implement so that company can provide real value of money to their customers. McDonald is
using these techniques for so long that's why they have made their place in the market which
other company can not attain it.
Customer orientation
In this approach company focus is to satisfy consumers needs and demands and ignore all
the other factors. Objectives and goals are align with potential customers needs. This can assist
McDonald to satisfy their consumers which leads to more loyal customer for company. But on
the other side, it incur losses for company as demands are change on a regular basis and it is not
feasible for McDonald to modify and change their products frequently.
Part 2
Trends within the marketing environment for McDonald
Crucial task of McDonald executives is to regularly monitor and analyse the environment
and trends which might affect the performance of company and modify their products and
strategies accordingly (Baker, 2014). For scanning environment, company can use PESTLE
model so that they would be aware about the latest trends in market. Model with functional
examples is given below,
Challenges due to political conditions in food industry: This aspect covers all the
actions which is taken by government and can create some impact on the working of McDonald.
Change in policies or tax rates have deep impact on the performance of brand and its
profitability. Political factors include labour law, political stability, tax policies, environmental
law etc. After the Brexit, McDonald might face problem while acquiring employees as
immigrants have to move outside the UK which leads to high cost for acquisition of employees.
On the other hand, government is concerned about the junk food and public health due to which
they have imposed heavy tax on these foods and which might affect their balance sheet in a
negative way. Rules and regulations changes after switching of government to one party to other,

so McDonald have to changes their overall strategies accordingly. McDonald have to set their
ingredients and method of using it according to the standards set by the UK government.
Increasing consumer spending in fast food industry: All the factors which is related to
customer are also connected to the company from which they are buying different products to
satisfy their needs and demands. Exchange rates create a problem as immigrants does not prefer
to eat in McDonald because of their prices. Moreover sterling is getting weaker day by day
against dollars due to which inflation rate of UK is increasing. McDonald can change their
prices of products which will assist them to attract more customers from eve£6.3bnry classes. If
company has proper amalgamation of different products with different prices then chances of
increase in sales is high which will persuade to enhancement of brand awareness and profits
(Bamossy and Solomon, 2016). For instance, McDonald should set their price of veggie burger
according to the market conditions as if due to currency fluctuation, product price might get
increase resulting in slow sales for company.
Rise in health conscious: This aspect of external analysis shows the condition that
supports or limits the business performance of McDonald. It includes population growth rate,
disposable income, health concern etc. Sociological factors support the growth of McDonald as
due to increase in disposable income of people, company sales will also increase to a certain
level. They have the opportunity of acquiring more customer by cutting their prices as compare
to their competitors. At last, health concern can create a negative impact on the McDonald as
they are selling junk products only. But they can launch a veggie burger which is full of multi
grain bread and vegetables which won't create any major impact on the health of consumers. So
it can be concluded that sociological environment is supporting McDonald and its operations
(Belch and et. al., 2014).
Opportunity to McDonald to introduce: This is one of the factor which helps company
to gain competitive advantage over others by increasing their quality and quantity of products so
to differentiate their products from other company. It includes automation in machines, advanced
technology, Research and development etc. This factor also supports McDonald as they can
disseminate their information of products on online platform or market their products on social
media which would help them to increase their brand awareness. On the other hand, due to
availability of ample amounts of funds, it will help them to acquire more latest technology which
would decrease the production cost and increase the quantity and quality of products. At last

main cost of products is incur by logistics departments and if they can control it by implementing
latest technology and techniques like Lean management or six sigma then it would made a huge
impact on the cost of products. For example, if McDonald is using latest technology to make
their Veggie burger then it will enhance quality and quantity of products which is a positive sign
for their growth in future.
Legal environment: Rules and regulations set by the government has major impact on
business activities (Fill and Turnbull, 2016). Though increase in minimum wages in UK can
create a negative impact on company as more cost would be incur by the company for
acquisition of employees. It includes discrimination law, employment law, health and safety law,
equality act etc. UK government is strict towards any actions which are breaking code of conduct
as company can face huge penalties if they use animals meat while making their products as now
governments are more concern about the animal regulations. Like McDonald have to set the
standards of product ingredients with proper law related to wages and working conditions so to
avoid any type of legal issues.
Situational analysis for McDonald
It refers to analyses of internal and external environment for company so that they would
be aware about their strengths, weakness, opportunity and threats. Main aim of analysis is to
strengthen the strengths, reducing weakness, tackle the threat and grabbing an opportunity to
expand business. This could be done with the help of SWOT analysis.

(Source: SWOT analysis, 2018)
Strengths:
 McDonald market share: Company has their operations in more than 100 countries
which is unique for any company in the world. Their customers base is high due to which
they have been on the top of market since many years. Large market expansion and huge
customer base helps company to maintain their leadership in the market (Tuten and
Solomon, 2017).
 Goodwill of company: McDonald has a goodwill in the mind of customers which any
other company cannot compete with. This assist company while opening their business in
any country as customers will automatically get attracted to the brand. Brand image of
company made a positive impact in sales turnover and profitability.
 Financial position: McDonald can invest in their technology advancement so to improve
their quality of products they offered. Quality of product is directly proportionate to
increase sales as if company is maintaining quality standards then it will automatically
increase sales and retention rate of customers. Apart from that they could invest on
marketing activities which would help them to increase their brand awareness and make
positive image in the mind of customers. Company can make changes like this as they
Figure 1: Swot analysis

have good amounts of reserves in their balance which makes them powerful competitor
for other companies.
Weakness:
 No new products: Company has been on the top from many years but in recent times
they are losing their position due to less uniqueness in the products and its services.
Customers prefers to eat different varieties of food but on the other hand McDonald is
equipped with limited amount of products which makes them less effective in front of
their competitors. They have launched different products in the market but could not able
to attract customers due to less uniqueness (Huang and Sarigöllü, 2014).
 High employee turnover: Employees of McDonald is less qualified and get less paid as
compare to other competitor due to brand name they have in the market which makes the
environment unhealthy to work. There has been rise in employee’s turnover due to salary
issues as they were not paying minimum wages to their employees.
 Negative publicity: Company sales have decreased drastically when there were rumours
that McDonald products is unhealthy to eat. Due to which many health conscious
individual does not prefer to visit their stores.
Opportunities:
 Disposable income increase: Income of people has impact on the sales of company. If
individual is spending in high amount, then it results in high sales for company. In the
recent time, potential customer’s disposable income is increasing gradually which will
help company to increase their sales in future. Its McDonald responsibility to find out the
targeted market and then act accordingly so to improve their balance sheet (Leeflang and
et. al., 2014).
 Changes in product menu: Company weakness from the starting is that they does not
have any unique or innovative products to their customers. If the upgrade their menu with
different products, then it would be able for them to attract more customers from the vast
market. McDonald can introduce healthy products in their menu through they will also
allures health conscious customers.
Threats:
 High competitors list: Fast food industry is one of the crowded industry as there are
many players like KFC, Domino's, subway, burger king etc who are changing their

strategies regularly to attract market shares. McDonald have to invest in market activities
due to high competition (Achroll and Kotler, 2014).
 Currency strengthening: Currency exchange rates and fluctuation of money plays an
important part in the success of fast food industry. Due to increase in Dollar currency,
disposable incomes of other countries individual who are living in UK has affected in a
negative way.
Brand new extension: It refers to stretching in products range of the company so to
capture more market share. Goodwill of company plays an important part as less money is
invested in the marketing activity of new product. It can be concluded from the above mentioned
points that McDonald needs to produce a product which is healthy in nature and improve their
product menu.
New product extension: McDonald can launch Veggie burger in which bread used in the
product is made up of multi grain which reduce any negative impact on the consumer body.
Apart from that, vegetables used in the product will be organic and no pesticides is used to grow
any types of vegetables. This product will help McDonald to attract customers as many UK
citizens are suffering from obesity which is caused by eating junk foods. This product will help
to remove their hunger by eating organic food.
Part 3
Keller brand equity model:
This model states that company have to create a positive image in the mind of customers
so to sell their products. This helps in creating and shaping the perception of customers about the
product in a positive sense. All the steps of brand equity model are discussed below,
Salience: This phase states that company have to create a brand awareness in the market
so that customer would be able to recognize their product. McDonald need to create positive
image about the veggie burger they are about to launch with the help of different marketing
activities like advertising, promotions, sales promotions etc. (Yadav and Pavlou, 2014).
Brand performance: This step is important from customer’s point of view because all
the points which should be known by the customer would be disclose by the company (Keller’s
Brand equity Model – CBBE Model by Keller, 2018). McDonald need to make sure that all the
ingredients which they are using would be known to their customers with their benefits. Veggie

burger should fit in customer needs and preferences so that they won’t hesitate while consuming
it.
Brand imagery: It refers to how product of McDonald product is meeting their customer
psychological level. Company need to ensure that their product is creating healthy image in the
mind of customers. This can be attaining by investing in marketing activities or launching a
advertising in which they are stating their product healthy with delicious taste as compare to
other company's product (Baker and Saren, 2016).
Brand response: It spells that customers should be able to make their connection with
the product so to achieve highest quality. McDonald responsibility is to remove any negative
judgement regarding the product and its benefits so that company would be able to save their
product from bad publicity. Company should be able to improve customer feeling at the time of
consuming their product as then only they would be able to feel superior while eating Veggie
burger. Main role of McDonald is to transform the customers into loyal so that frequency of
work of mouth marketing will increase.
Brand resonance: This phase is toughest to achieve by company as company need to
make a relationship between customer and their product they are offering. Company should offer
different types of sales promotion so that they would be able to improve customer engagement
experience which will make relationship stronger (Brennan, 2014).
Customer can only become brand loyal if all the offerings company is providing is
satisfying their needs and demands. McDonald can achieve this phase by providing best quality
of product with less price with heavy marketing. If customer is attached to Veggie burger, then
they will attain the peak of brand equity.
Segmentation- Targeting- Positioning:
This technique is used by company to create potential customers and then targeting them
to achieve sales and profitability. It is of no use to target whole market as time and money incur
in this will be high. McDonald STP is explained below,
Segmentation: McDonald can segment their market according to the case of obesity and
other disease which could be reduce by Veggie burger. There are more cases of obesity as
compare to other country in the world. SO McDonald market segment is the one who are
suffering from problem of obesity (Proctor, 2014). Company can use relationship marketing
approach while expanding their products in different segments as huge money is required by

company to start their new project. This will help them to identify those activities which should
be given extra focus as compare to other business operations so that maximum utilisation of
resources would attain.
Targeting: After segmentation, company should target their potential customers.
Targeted customers will be of age 10-50 years as number of frequency of obesity is high in this
range of age.
Positioning: It refers to create a favourable image in the mind of targeted customers.
McDonald can achieve this stage with the help of integrated marketing like sales promotions,
social media marketing, surrogate marketing etc. This approach will help company to change
their strategies and plans according to the customer changing needs. Company should regularly
check their efforts they have done with the ROI. This can be accomplish by using performance
marketing approach as it will help them to identify their activities which is useful for McDonald
to expand their business.
Conclusion:
It can be concluded from the above report that marketing and its activities plays an
important role in the success of organisation. Company can use equity model to enhance their
goodwill and equity in the mind of potential customers. STP assist company to find customers
who could be there consumer in future as it will improve company sales and profitability to a
certain level. Market scanning is important for company as it helps them figuring out the threat
and opportunities for the company and how it can be resolve so to attain sustainable business
performance. Marketing philosophies is helpful for company as it aligns company business
operations with their vision and mission.

References
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