McDonald's New Product Marketing Analysis

This assignment examines the marketing strategies for a new McDonald's product. It includes a SWOT analysis highlighting the brand's strengths, weaknesses, opportunities, and threats related to the product launch. The document also delves into a marketing plan evaluation, discussing key aspects like return on investment (ROI), expansion strategies, and customer response as measures of success.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1) Introduction to the concept of marketing, including future and current trends .....................1
2) Overview of the different marketing processes......................................................................2
3) Role and responsibility of a marketing manager in McDonald's............................................2
4) Marketing influence and interrelated with other functional department of the McDonald's..3
5) Values and importance of the marketing role in organisation................................................4
6) Conclusion about importance of having effective relationships between different functional
departments.................................................................................................................................4
TASK 2............................................................................................................................................4
7) Comparison between the marketing mix of two organisation................................................4
TASK 3............................................................................................................................................8
8) Marketing plan of McDonald's...............................................................................................8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13
.......................................................................................................................................................13

INTRODUCTION
Marketing is the process which is used by the companies to create customers interest in
product or services (Baker and Magnini, 2016). It generates the strategy that underlines sales
techniques, business communication and business development through it organisation wants to
satisfy the wants of customers. In this report chosen organisation is McDonald's. McDonald's
was established in the year 1940 in America. It is a fast food company and sever in food and
beverage industry. The aim of this report is marketing analysis by satisfy the customers. This
assignment covers various topics like- concept of marketing, roles & responsibilities of
marketing and its process, elements of marketing mix. Apart from this, a marketing plan is also
developed for the McDonald's.
TASK 1
1) Introduction to the concept of marketing, including future and current trends
Marketing is identify as an effective process of management through which services and
goods move from concept to the clients. According to the American Marketing Association:
marketing is the set of institutions, activity and process for communicating, developing,
exchanging and offerings value for clients. Marketing concepts are divided into main five parts
which show the core of marketing at McDonald's. Theses marketing concepts involves the future
as well as current trends for a marketing planning in successful manner. There are some concepts
which are involves in marketing are determined as under:
Production concept: It is a type of marketing concept which is mainly based on
consumer's perception. It will shows that the customers are inclined towards the products of
McDonald's which are available in better quantities in market at reasonable price (Campbell,
Martin and Fabos, 2018). Therefore, operational capacity of restaurant must emphasis on
maximising production rate.
Product concept: In this concept, customers relate and select the product of company
which have value for new approach, quality and money. Such concept of marketing moves that
the clients can be retained via the services and products which are valuable and beneficial for
clients.
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Selling concept: It order to attract large number of customers, such type of concept is
more essential and important for the company. With the help of this aspect organisation use
different types of promotional channels such as T.V, Magazines etc.
Marketing concept: This concept determines the needs of target audience about the
process of delivering goods and services at market. Furthermore, in order to face challenges in
competitive market, McDonald's requires to offer better value of services and products. It will be
essential for the future growth and success of company within predetermined time period
(Cavusgil and et. al., 2014).
Societal marketing concept: Such concept depict the main emphasis over requirements
of target audience, so the customers will chose business brand or product over the many other
contemporaries in marketplace.
2) Overview of the different marketing processes
Marketing process of McDonald's includes some stages such as mission, situational
analysis, marketing strategy, marketing mix, implementation and control. All these are major
part for the company to implement and introduce their products to the customers and in the
market. These process are determined as under:
Mission: McDonald's is dedicated to making good and high quality products.
Situational analysis: McDonald's competitive benefits is driven by its commitment to
knowing needs of customers and focusing on the product quality that are core to business
mission.
Marketing strategy: McDonald's is multinational organisation that produce quality
products and services to the customers (Hair and et. al., 2015). Organisation relies on brand
loyalty from available clients as a strategy when introducing new services and products.
Marketing Mix: While McDonald's offers a different range of products or services, it
values Bundle and Psychological pricing strategy and relies on less of counsel for distribution.
Implementation and control: In this company implement their products at market place
which is essential for them to maximise customers base and improve their profitability.
3) Role and responsibility of a marketing Function
There are different kinds of roles and responsibilities that need to be performed by
marketing manager in order to support McDonald's in achieving desired goals and objectives.
Here are the some roles and responsibilities of marketing manager in McDonald's:
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Identifying potential markets: The marketing manager need to identify new potential
markets where the demands of McDonald's products are more and put their maximum efforts in
establishing healthy relationship with targeted people through implementing various marketing
tools such as social media marketing, collecting feedbacks from the regular customers while
visiting at their outlets. It assist company in achieving loyalty of targeted customers for longer
period of time.
Evaluate the product: The needs and demands of McDonald's changes more frequently
which should required to study and accordingly evaluate the product so that required
modifications and alterations can be made by the production team of McDonald's.
Communicate develop products in market: Marketing manager should adopt various
techniques such as TV advertisement, social media platform etc. through which they can
communicate with targeted people and inform them about the new changes McDonald's has
developed in their menu. It easily attracts and influences buying behaviour of targeted customers
(Kladou and et. al., 2016).
Market Strategies- It is a responsibility of marketing department to develop a strategy for
an organisation by analysing market situation. In is important for McDonald's to develop strategy
for make a balance between objective of a firm and opportunities in market.
Marketing Information System- MIS helps to provide the information related to different
marketing factors like market products, strategies, planning, controlling etc. It helps to
McDonald's to build a network in organisation and distribute the information to all employees
regarding market situation.
Monitoring of Marketing Environment- It is a responsibility of marketing department to
monitor the marketing environment in context of both internal and external environment like
social, political, legal, economical etc. It helps to improve quality and productivity of
McDonald's.
4) Marketing influence and interrelated with other functional department of the McDonald's
Market is a place where large number of buyers and sellers are get together to buy or sell
of goods and services. Marketing is a set of activities which attract or influence customers
towards product. It include different activities like advertising, delivering of goods to appropriate
buyers. In context of McDonald's, there are different departments who are interlinked with with
marketing department to satisfy the needs of customers. It is discuss as under:-
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Marketing and Human Resource Department:- Important role of human resource
department is to recruit or select right candidate for right job who fulfil all requirements. It is
necessary for functional manager to co-ordinate with human resources manager to appoint
quality employees who contribute for the growth of a firm. Marketing department of McDonald's
convey to fulfil vacant place in their section through which HR manager can recruit candidates
who is best suitable for that position (Lane, 2015).
Marketing and Finance department:- Finance department plan and organise company's
assets. Finance manager of McDonald's is liable to identifying the need of funds to other
departments and provide them appropriate fund by which they can execute their performance
effectively. Marketing department need huge amount in promotional activity. In this case,
marketing manager contact with finance manager to get required amount for accomplish task.
Marketing and Research & Development Department:- R&D department plays an
important role to gathered information related to customers needs and competitors strategies.
Through this, marketing department of McDonald's make their product as per customers taste
and preference and make quality product in comparison to competitors. Operational division of
McDonald's coordinate with R&D to identify the demand of customers and strategies that should
be adopted for covering maximum area.
5) Values and importance of the marketing role in organisation
Marketing role in McDonald's is more essential and significant for the company to easily
attract large number of customers and achieve better results within predetermined time period. It
will be also significant for the organisation to introduce their products or service at marketplace
and to the customers (Malhotra, 2015). Thus, it is more beneficial for the growth and success of
McDonald's at large scale.
6) Conclusion about importance of having effective relationships between different functional
departments
As per the above mentioned information, it can be concluded that effective relationships
between different functional department is essential for the growth and development of
organisation. It is also essential for the company when they expanding their business operations
and activities at large level. Beside this all departments are work with each other that help an
organisation to complete all activities in given time period.
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TASK 2
7) Comparison between the marketing mix of two organisation
The marketing mix describe the strategy which is used by an organisation for satisfying
and reach the customers desires, in terms of place, product, price, promotion, people etc.
Marketing mix of McDonald's corporations involved several approaches for meet business
concern in various fast food restaurants around the world.
Illustration 1: The Marketing Mix
(Source:The Marketing Mix, 2018)
7P'S McDonald's Burger king
PRODUCT Products are a important
determinant of this company's
corporate and brand image.
MacDonald's is mainly known
for its burgers. Product of the
marketing mix covers the
several organisational outputs
like services and goods that
the business provides to its
Burger king run as a fast
service restaurant business
focusing on burgers as its
important products. This
company's important products
are: Burgers, sides, chicken
and fish, beverages, sweets and
salads. Product mix helps the
Burger King's strategy through
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target industry (Pappas, 2017).
MacDonald's include various
products lines like:
hamburgers, fish and chicken,
beverages, snacks,
sandwiches, Mc cafe etc.
economics of standard from
large-scale manufacturer of a
limited amount of product
lines.
PRICE McDonald's use two type of
pricing strategy: psychological
and bundle pricing strategy.
The main target is to use
prices for maximising sales
volume and profit. In bundle
pricing policy, if customers
are purchase meals and other
products in bundles then
company provide discount on
that products (Pike, 2015).
And psychological pricing
policy, support to company for
encouraging the customers to
buy company's product based
on perceived afford ability.
Burger king use mainly
market-oriented pricing
strategies and bundle pricing
strategy which minimizes the
prices and cost. In market-
oriented pricing policy
involved demand and supply
condition as well as the
evaluation of competing firms.
And secondary pricing policy
refers that consumers can
purchase meals at bundle
price and get discount on that
products as compare to buying
products separately.
PLACE Place of Marketing mix can
helps to finding locations and
venues where products are
offered and consumers can
easily assess them.
MacDonald's have many
distribution channel like
restaurants, McDonald's
This element of marketing mix
provide various distribution
channel of company like
restaurants. Websites and
mobile apps. This company's
consumers can use mobile app
to use different coupons for
getting special offers.
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mobile app, Kiosks, Postmates
apps and websites and other.
but restaurants are the most
suitable places where
company's goods are
distributed. Restaurants are
those places where company
generated most of the
revenues.
PROMOTION Promotional mix describe the
tactics to support the business
so, that company can easily
communicate with its
consumers. McDonald's use
many types of tactics in this
mix like advertising, public
relation, sales promotion and
direct marketing etc. This
company use radio, online
media, TV and print media for
its advertisements. The
company also use direct
marketing for local
governments, corporate
clientele, community parties
and events. But MacDonald's
give priority to the
advertisement for promote its
products.
Burger king use many types of
tactics for promotion of
products like advertising,
public relation, personal
selling and sales promotions.
This uses sales promotion in
the kind of coupons which is
use through mobile apps and
websites (Pike, 2016).
PEOPLE 97,000 people are work in People are the main elements
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McDonald's in UK and 70%
restaurants of this company
are operated by local
businessmen. Employees
should be proper train by the
managers for better
performance (Purvis, 2015).
of the Burger king company
because they run all business
from bottom to top like sales
staff to the managing director.
Company should having right
number of people to
accomplish the target goals.
PROCESS Process define as a set of
activities in order to achieve
company's target. In this
company, production of food
is overall an important process
for satisfying the consumers
taste and desires.
Process is an important part for
preparing of good quality
foods. Burger king focus on
customers because customers
wants best quality foods.
PHYSICAL EVIDENCE This is the last component of
marketing mix of McDonald's.
It is describe the customers
experience and physical
environment views (Rancati,
Gordini and Capatina, 2016).
This elements effects not only
on the impressions of the
consumers but also on the
McDonald's functions.
Burger king has its own
websites BK.com and this site
provide all information
regarding company like stock
information, history, press
releases etc. It's new
restaurants features are modern
and interiors are attractive.
Different Tactics applied by an organisation
There are different tactics applied by McDonald's to achieve their goals and objectives.
These are as follows:-
 Firstly, McDonald's define the market area for their organisation.
 They create market segment that take place on target market.
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 Evaluation is done for different market segments for a particular area.
 They attract people by evaluating market segment.
 A specific target market is select to focusing on their demands
 Strategy is developed and implemented in McDonald's to achieve their goals and
objectives.
 Feedback is taken from customers about their products and services.
TASK 3
8) Marketing plan of McDonald's
Marketing plan is like a blueprint in which McDonald's make overall strategy to grab
more market share. It helps the organisation to earn more revenues. As an assistant to a
marketing manager, McDonald's can develop a marketing plan for its company.
Objectives of marketing plan
The main objective of marketing plan is to enter in the new business field or to create
innovations in existing product or to create inventions to acquire a large market while perfect
competition condition (Scarborough, 2016). As Domino's is the big pizza brand in market and
the company wants to innovate in their existing food items to generate the revenues. SMART
goal and objectives helps the company to grab more market share. The meaning of SMART is-
specific, measurable, achievable and time. It helps the company to achieves its objectives.
Marketing mix for McDonald's
Marketing mix is the important element for any company. It helps the organisation to
design its market plan for the new product. McDonald's use marketing mix for the launching
new products. It is mentioned below-
Product:
Product is the thing which company wants to launch in the market. For McDonald's it
has various fast food products in its menu.
Price: McDonald's Use Bundle pricing strategy which is essential for the company to attract
large number of customers easily (Smith, 2014). Price is important part of product which is
needed to be know by the McDonald's and its customers.
Price: It is most important element of marketing mix of McDonald;s. Prices can be reasonable so
that more number of consumers can buy the products of it.
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Place:
Place is where company wants to launch the new product. McDonald's wants to launch its
product in UK region.
Promotion:
Promotion is needed to create the awareness about the product. There are various
promotional tools which can be used by the company promote its product. It can be done through
T.V, newspaper, advertisement. There are many elements of marketing mix which McDonald's
can use to promote its new product.
People:
It can target more number of people in other countries because 70% of its restaurants in
UK. It can attract more consumers by its marketing plan so that it can grab market share.
Process: It means set of various activities which helps the company in marketing plan. It includes
planning, analysing and marketing strategies.
Physical evidence: It is the last marketing of McDonald's which focus on the elements of
the physical environment visitors and consumers experience. It also improves the functions of
organisation. It helps to achieve marketing strategies of McDonald's.
As an assistant to a marketing manager, McDonald's can develop a marketing plan to launch a
new product. Organisation can launch its new product that is Mc-swirls in strawberry flavour.
This product can be launch for target audience of 12- 40 years.
Objectives of launching mew product:
The main objective of launching this new product is to enter in the new business field or
to create innovations in existing product or to create inventions to acquire a large market while
perfect competition condition (Scarborough, 2016). As Domino's is the big pizza brand in market
and the company wants to innovate in their existing food items to generate the revenues.
SMART goal and objectives helps the company to grab more market share. The meaning of
SMART is- specific, measurable, achievable and time. It helps the company to achieves its
objectives.
Marketing mix for Mc-Swirls:
Marketing mix is the important element for any company. It helps the organisation to
design its market plan for the new product. McDonald's use marketing mix for the launching of
new product Mc-swirls. It is mentioned below-
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Product:
Product is the thing which company wants to launch in the market. For McDonald's it is
Mc-swirls.
Price: Mcdonald's Use Bundle pricing strategy which is essential for the company to attract large
number of customers easily (Smith, 2014). Price is important part of product which is needed to
be know by the McDonald's and its customers. The price of Mc-swirls can be around 3 GBP.
Place:
Place is where company wants to launch the new product. McDonald's wants to launch its
product in UK region.
Promotion:
Promotion is needed to create the awareness about the product. There are various
promotional tools which can be used by the company promote its product. It can be done through
T.V, newspaper, advertisement. There are many elements of marketing mix which McDonald's
can use to promote its new product.
Tactics:
Tactics is a promotional tool of the marketing which is used by the company to create
awareness to its customers about the product.
Direct mail:
Direct mail is a promotional tool which can be use by the company for the promotion of
its products. Now a days nobody reads mail until unless it comes with a attached coupon in it.
McDonald's can use mail for the promotion of its product.
Handwritten Notes:
Handwritten notes are the different way of promotion among consumers. It makes the
relation strong between company and costumers. It helps to attract the customers for buying its
new product that is Mc-swirls. Mc-swirls can also use social networking sites and discount
coupons to attract the consumers.
SWOT analysis for McDonald's for its new product:
Strength Weakness Opportunities Threat
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Brand image of
McDonald's is
worldwide.
Unhealthy food for the
health.
Expend it beyond UK. Competitors like
Subway and Burger
king.
Better and god taste of
product with
affordable price
Disgruntled franchise Can do joint venture
with malls in UK
Downturn in economy
can influence the sales.
Marketing Evaluation:
Marketing evaluation is a technique which is used after the marketing plan, to measure
and evaluate the success and failure of the company's product which is newly launched. If
company is not able to get success and organization is failing to deliver good services to
consumers, by marketing evaluation company can know this. There are following ways to
evaluate the marketing efforts which are as follows:
Return on Investment:
Return on investment helps the company to identify its success or failure. It is the amount
of profit over the company's investment expenditure.
Expansion:
Expansion helps to consider the market reach of a product. It can be more effective with
better promotional techniques. Through promotional techniques expansion of product can be
possible to wider group of people (Zolkifly and Baharom, 2016). McDonald's can use
promotional techniques to expand its product awareness among the customers and other persons.
Customer response:
Customer response can decide the success or failure of a product because customer is the
king of market. Company also wants to satisfy the wants and needs of consumers by providing
quality product with affordable price. It is necessary for the organisation the satisfy the
customers so that they can survive for long time in the market. By using marketing plan for
launching a new product, McDonald's can get success.
CONCLUSION
From the above stated data, it can be concluded that marketing is more significant and
essential for the company to easily introduce their services and products at marketplace and to
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the customers. For this, marketing manager play vital role for applying marketing process and
concepts. It is beneficial for the enterprise to identify future and current trends of market and
customers. Along with this, 7P's of marketing mix and marketing plan of the company are also
important in attracting different number of customers as well as maintaining long run
sustainability at large scale.
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REFERENCES
Books & Journals
Online
Seven Functions of Marketing. 2018. [Online] Available
through<https://smallbusiness.chron.com/seven-functions-marketing-56980.html>./
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