McDonald's Marketing Budget and Strategy

This assignment explores the marketing strategies employed by McDonald's. It delves into their detailed marketing budget across five years, outlining expenditures for advertising, sales promotion, and direct marketing. The analysis emphasizes the importance of monitoring and control in ensuring effective resource utilization and achieving business goals. Additionally, it highlights the significance of the marketing mix in evaluating the company's performance and customer satisfaction.

MARKETING
ESSENTIAL

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1) Covered in ppt. ....................................................................................................................1
P2) Covered in ppt. ....................................................................................................................1
TASK 2 .......................................................................................................................................1
P3) Comparison among McDonald's and Aldi through marketing mix......................................1
P4) Basic marketing plans for organisation................................................................................4
CONCLUSION ..............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing can be considered as the wide term which is described as the place where
people can easily exchange products and services in terms of money. Marketing is a combination
of various tools and techniques in which sales promotion, public relation, marketing campaign
are included. In today's scenario most of the business organisations are focused on fulfilling the
requirements and wants of customers in order to satisfying their needs and wants. The essential
purpose of each organisation is to gain more profit and revenue through offering variety of goods
and services to their potential buyers who are very much willing to taking advantage of offered
services of firm. Each business firm is creating merchandising plan which helps in
accomplishing competitive advantage at market point and providing high competition to their
competitors. For this particular report McDonald's is the choose company, who deals in
hamburger and fast food restaurant chain. This is world's most leading food company in United
Kingdom, who is famous for providing variety of food products to their customers in terms of
gaining profit and growth (Lipsman and et. al., 2012). This project contents the study about roles
and responsibilities of various marketing function that are used by company in order to carry out
their business activities in most efficient direction. Marketing plans are useful in evaluating
positioning, segmenting and targeting strategies which are most reliable for performing business
operations. The use of marketing mix as a marketing planning process which is effective in
achieving organisational objectives.
TASK 1
P1) Covered in ppt.
P2) Covered in ppt.
TASK 2
P3) Comparison among McDonald's and Aldi through marketing mix
Marketing mix plays most essential role in evaluating the actual performance of
company. These are more effective in launching new and innovative products at market place.
They are also considered as the approach of integrating marketing in which all task are combined
with each other and very much useful for marketing operations (Desai, 2013). This is more
valuable in attaining desired goals and objectives of firm.
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Marketing mix of McDonald's:
This is a most popular food chain across the work who is renowned for supplying high
quality products and services to their potential and regular customers in order to gaining more
profit and revenue. The company is providing variety of food products through their outlets
which are established in different locations (Dibb and Simkin, 2013). They are promoting and
dealing in franchise business and having number of outlets over 121 countries. They are focused
on satisfying the needs and wants of customers through offering high quality goods and services.
The 7P's of marketing are described as under: Product: This is the most essential element of marketing mix and plays most significant
role in gaining attention of customers through their attractive features. The basic
objective of company is to satisfying the needs and wants of customers through offering
variety of goods and services. McDonald's has variety of products and its deals in variety
of products such as veg and non veg products like French fries, Cheese burger, chicken
Mc nuggets, hamburgers etc. they are mainly focused on imp[roving their quality of
products in order to creating brand awareness among people. Price: This can be considered as the most critical task for each business organisation.
McDonald's is focused on adopting most appropriate strategy in order to providing goods
and services in affordable price (Fill, 2011). An effective pricing strategy helps in
increasing the profit ration of firm which helps in developing organisational overall
performance. Place: This element of marketing mix are related with different physical location through
which organisation provide various products and services to their customers. They have
create their existence over 121 countries who deals in more than 40,000 eating place and
outlets. They had adopted assertive plan of action for expanding there markets in ruler as
well as urban areas. They are mainly establish their outlets in the city area of country,
which helps in providing quick response on customers request. Promotion: Company is focused on adopting various strategies of marketing in order
creating awareness among people who are very much interested in taking advantage of
offered services of firm. In order to gaining attention of customers McDonald's conduct
various marketing strategies such as personal selling, advertisement, sales promotion and
public relation etc.
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 People : McDonald's has categorised its group of people for middle class and lower level
income group. It provide quality food products to its group of people at cheapest price.
Basically the people contains different type of customers categorised as targeted groups
and work accordingly (Hsu, 2011). McDonald's have different type of food categories for
different type of customer groups. Process : Process of food manufacturing is quit transparent in McDonald's. Customers
get quality food manufactured and cooked in front of their eyes. It gives surety of product
and quality to the customers. Employee service of Mc Donald's present the hygienic
theme in front of customers and shows the model of quality services. Physical evidence : McDonald's present hygienic appearance to its customer while
delivering the products and services. Its satisfactory and supporting staff services are
delivering its services across the world. It has approx thirty five location across the world
and approx three lack employees are performing their in the organisation.
ALDI 7p's analysis
ALDI is one of the discount supermarket organisation which is organising approx ten
thousand stores in eighteen countries (Jones and Rowley, 2011). It was founded in 1946 by Karl
and Theo Albrecht they took over the store which was run by their mother since 1913. It got
separated in two groups and then after its journey took enormous changes and modulations.
Below are the analysis of 7p's of organisation in respect of Aldi.
 Product : Aldi provide wide range of food products at good quality as other branded
products. Aldi opt best suppliers for quality products and brands at optimum cost and
cntrol. Aldi control the prices in supermarket by applying moderate approach of price
policy. Adli deals in daily consumable food products, fruits, vegitables, health and beauty
products, cloths, stationary, household products, soft tools and electronic products. Price : Aldi has cheapest price and best quality products in its super market. Customers
of Aldi are easily able to compare the prices between similar products. It uses different
pricing strategies like unit pricing strategies, market penetration, competitive pricing
strategies, psychological pricing strategy (Joshi, 2012). They provide various offered to
their regular customers in order to enhancing their brand awareness in the mind of
people.
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 Place : Aldi has large criteria of customer market group across the world. It has approx.
ten thousand stores in eighteen countries and is working on extreme level in UK. Its
suppliers group has also strong as its customers. Promotion : As promotion point of view Aldi opt cost effective approach in market.
Basically it gives tempting offers on its products so that customers automatically drive to
stores (Kennedy and Parsons, 2014). Company is applying various strategies of
promotion such as advertising on television, newspapers, social campaigns, personal
selling etc. People : Aldi provide wide range of customer products in particular segment and it has
specification section for particular group of people. Process : Aldi does not use any specific process for selling its products. Customer opt the
goods as per their interest and criteria.
 Physical evidences : Aldi is on of the organisation deals in internation super market. It
provides home brand and the remaining from well recognised brands at cheapest price.
Aldi is growing supermarket services across the world and creating customer's believe.
P4) Basic marketing plans for organisation.
Marketing plan plays most effective role in conducting whole business activities in right
direction. As a food retail company McDonald's is focused on providing high quality food
products to their customers across the world (Khan and Adil, 2013). Company has more that
20000 restaurants, which are established at various location over the world and provide high
quality and fast services to their customers in order to attracting large number of customers
towards the offered products and services of firm. An effective marketing plan has involved
various components, which are described as under:
Vision and Mission statement:
Vision statement: This can be considered as a predetermined statement which helps in providing
a proper assistance to whole business activities. They has designed various process and
procedures for manufacturing products and services that are having different ingredients from
other firms (Kranias and Bourlessa, 2013). They are focused on performing as per the principles
of guiding and effective core values.
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Mission: This statement is connected with quality of products, flourishing and effective working
environment and values of clients who are coming and taking advantage of served products and
services. Different tools are used in order to attain success and growth for long run of concern.
SWOT Analysis is described as follows:
Strength This can be considered as the power of firm, which is utilised by firm for
enhancing their performance and working ability.
 Company is having variety of food products that are helpful in
attaining competitive advantage at market place.
 Focused on attaining leading position at market place through
applying new and innovative tools of production.
 Gaining attention of customers through reducing the cost and
price of products.
Weaknesses These are directly impacted on organisational work through problems
which are arises at work place.
 As a food company they are not able to produce innovative and
effective ideas for developing their products (Lamb, Hair and
McDaniel, 2011).
 Faces various issues due to high competition at market place.
Opportunities These are helpful in gaining high position at market place.
 Due to expansion of business company helps in proving various
job opportunities to people who are facing the issue of
unemployment.
 Company is using various marketing strategies in order to
gaining attention of customers.
Threats These can be described as the issue and obstacles which are faced by
firm at the time of serving goods and services to their customers
 High competition is major issue of firm.
 The major threats is changing rate of currency which is mainly
faced by company.
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Competitors of McDonald's:
In today's modern world there is large competition available at market place which may
impacted on organisational performance through offering more products and services in very less
price (Lipsman and et.al., 2012). The major rivals of McDonald's are Burger King, Pizza Hut,
Wendy's International and KFC who are largely impacted on their net profit ratios because they
are also rendering same food items with similar taste to the customers.
Marketing Budget:
It is required for firm to analyse the new market trend and strategies which are adopted
by firm in order to carry out their business activities in appropriate manner. It is the
responsibility of financial manager to make proper budget in order to conducting various
promotional activities which are beneficial for gaining attention of customers at market place. A
proper budget helps in creating awareness about products, so this could easy for buyers to
purchase as per their own requirements. The marketing budget of an organisation is described as
below:
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 70000 120000 162000 150000 38000
Investment 29500 36600 32000 16300
Total 70000 90500 125400 118000 21700
Marketing
expenditures
Advertisement 8000 9000 6000 6000 5000
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sales promotion 3000 1500 3000 2000 7000
Direct marketing 7000 4000 6000 9000 4000
Total 18000 14500 15000 17000 16000
Available balance 52000 76000 110400 101000 5700
Monitoring and Control:
This is most essential element of firm which is needs to be performed by higher authority
and manager of firm in order to providing proper assistance to all business activities that are held
at work place and have value in gaining growth and profit for company (Lancaster and
Massingham, 2010). It is essential for each business organisation to manage their work in well
planned manner so that resources can be used in effective manner and create value through
producing more products and services as per the demand and preferences of customers.
Company is focused on resolving issues and problems that are faced by firm in respect of
developing supply chain management.
CONCLUSION
As per the below mentioned report it has been evaluated that each business system is
concerned on providing high quality products and services to their potential in order to sustain
them for long time. Company is focused on producing those goods which crests value for
customers as well as organisation through increasing sales of firm. Marking mix plays most
effective role in evaluating the actual performance of firm through measuring product, price,
place. Promotion, physical evidence, process and people. As a leading food chain company
McDonald's is concern on producing high quality goods and services through applying various
innovative tools and techniques in order to satisfying the current needs and wants of customers
who are willing to taking benefits of offered food products of company.
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