The assignment explores competitive marketing strategies employed by hospitality businesses in the United Arab Emirates (UAE). It delves into relevant industry trends, challenges, and analyses academic research to provide insights into effective marketing approaches within this sector.
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MARKETING ESSENTIALS
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 Brief history of organisation.......................................................................................................3 TASK 1............................................................................................................................................3 P1 Key roles and responsibilities of marketing function............................................................3 P2 Roles and responsibilities of marketing relate to wider organisation....................................6 TASK 2............................................................................................................................................9 P3 Compare ways in which marketing mix can apply................................................................9 TASK 3..........................................................................................................................................12 P4 Produce and evaluate basic marketing plan.........................................................................12 CONCLUSION..............................................................................................................................16 REFERENCES..............................................................................................................................17
INTRODUCTION Marketing is an important task of any organisation which is necessary to be conducted for improving sales and profits. Every company want to manufacture an efficient as well as effective products or services to gain satisfaction of customers. There are various kind of promotional activities which are organised by each and every firm to provide information about innovative goods or new concept to people for making them aware (Berkowitz, 2016). These events should be organised by building more unique and attractive strategies or policies to carrying out several promoting procedures tio gain better outcomes. It will facilitate to achieve more productivity and profitability of an enterprise. This report will discussed about key roles and responsibilities of marketing function and its relation to wider organisation. Comparative description of marketing mix between two companies and preparing basic marketing plan with evaluation is below. MAIN BODY Brief history of organisation This assignment is based on McDonald's which is a fast food company of America. It was founded by Richard and Maurice McDonald in 1940 as small restaurant. This organisation had its original headquarters in Oak Brook, Illinois but has approved plans to move its global headquarters to Chicago by 2018. In current scenario, it may considered as largest restaurant chain by revenue and serve to around 69 million clients daily in 100 nations having across 36900 outlets. Its organisational culture defines the traditions, habits and values which may impacts on behaviour of employees. They usually encourage learning to improve capabilities of staff members for attaining desired results. McDonald's organisational structure is helpful to mange markets based on performance level to satisfy customers. TASK 1 P1 Key roles and responsibilities of marketing function There are different kinds of organisation in all over the world which has various strategiesandpoliciestocarryingoutbusinessproperly(BrassingtonandPettitt,2013). Marketing is an essential tasks for each and every company so that they become able to improve sales and profits. It is an important aspect to be carrying out necessarily for providing mandatory knowledge about new product or innovation implemented in existing one to people. It is essential to make several an effective as well as efficient strategy of marketing so that company is able to
gain more number of clients to grab more market share. There are different types of functions in McDonald's which are needed to be conduct properly yo achieve better outcomes. Nature of marketing - Marketing seeks to achieve benefits for both buyers and sellers by satisfying human needs. Marketing is consumer oriented and it is crucial to know what the actual demand of consumer is.Marketing creates four components of utilities viz. time, place, possession and form. Marketing functions: - Marketing Information management:- This term can be described as management of information system which render necessary knowledge about every aspect of company. This will facilitate to make appropriate plan of action to be applied for attaining better outputs on regular basis. Several techniques should be build by manager company so that various activities and procedures can be completed with better results through effective performance of staff members (Desai, 2013). To make an innovative and desired product, firm required proper information to prepared better service for gaining satisfaction of people. McDonald's has a very efficient marketing information system through which they find all revenues made by them for each prospects owned and deduct expenses to have main product. Distribution (Channel management):- Distribution is aessential task for organisation because it is necessary to provide bulk of any product at correct time to retailing stores or channels. Company need to take care in terms to avoid delayed supply of goods or services to fulfil expectations of people. Companies are generally distribute their products to various retailers or to those stores which owned by same firm. Sometimes, it is observed that high demandforspecifiedgoodmayincreasedthenenterprisehavetocompleteitthrough maintaining stock and supply chain to complete desires of people. McDonald's has an effective strategy of distribution for their food items in which they supply it by their own stores situated globally in several countries. They have established own stores all over the world to render more delicious and tasty food products to people. Product management (Service):- Basic factors behind success and profitability of organisation in market. Every company has a core product with unique and creative concept to complete need, wants and demands of customers (Dibb and Simkin, 2013). Product of an
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enterprises must designed in effective manner so that more number of people will be attracted that results into improved profitability. It is well known that current scenario of market is all about changing trends according to that firms required to make some modifications into good or services.It is necessary to maintain strong position in front of various competitive enterprise which results in attractive new clients along with retaining the current ones. McDonald's considers mainly to apply fresh concept in its food items such as breakfast bowl and chicken McGriddle for their desired consumers. Regular implementation of something fresh is essential because people change their preferences as per trends. Financing:- The term finance refers to to factors of money and function which is used as capital for implementing in company to carrying out different activities as well as procedures for gaining better results. Without applying essential amount money and resources, it is not possible to conduct as single event of an enterprise to attain benefits (Hsu, 2011). It is very important to mage he funds of an enterprise to utilise them at desired time or in some crucial situation to overcome with it. All kinds of debits and credits should be recorded for future requirements so that better plan of action can be designed. McDonald's analyse each revenue made by them for every aspect and less expenses from it to have main product. Selling:- There are different types of enterprises are running and manufactures their core product or services. But the fact is only production of desired good or services is not enough but they have to sell it at specific price to customers for achieving better outcomes from it. Preparing a brand in attractive way is important to gain satisfaction but selling technique should be innovative and creative to gain more number of customers. It will facilitate to increase sales of company which results in improving productivity as well as profitability. McDonald's has food products which they provide to desired clients by following faster service through established restaurants around the world. Promotion:- The term promotion refers to those events and activities by which company have to render appropriate information about product to people. Firms can conduct several attractive processes to boost up sales and profits. It is necessary to make people aware about the particular services or applied new innovations to it (Jones and Rowley, 2011).This will results into building strong image of brand to grab more market share and maintain better position in front of competitive organisation. McDonald's usually prefer commercials on television and
posters like on he Olympics or the NFL. They have an attractive logo and advertisements which helps to boost up number of clients along with sales. Pricing:- An organisation manufactures an effective product but most important thing is to make decision about pricing of it. This is essential because people want better services at reasonable that is in budget of income so that they can afford it. Pricing should be prepared by companies in more effective as well as efficient manner. Firms have to keep in mind hat fact price of product must be suitable for both company and customer. McDonald's set their prices in such way so that every person can afford its food items. They have started pricing firm very low to high as per different nutrient goods desired by clients. P2 Roles and responsibilities of marketing relate to wider organisation There are various kind of function carrying out by different departments in organisation to attain desired outcomes. Separate sections are established in the company complete various tasks and procedures in correct manner because they are inter related to each other for gaining better results. An enterprise is required to conduct several functions such as research & development, administration, client services, distribution, finance, human resource, marketing, sales, production, ICT and so on (Lamb, Hair and McDaniel, 2011). Every aspect related to these factors are necessary to be managed in proper way to run a business successfully to achieve better results. McDonald's haveto set each functional department in such a manner to follow certain effective strategies or policies to perform on specific project to gain desired outcomes from it. Manufacturing of food item if this company should be done in proper way to deliver goods on time to right client as per placed order for eatable things. Some of these functions are described below: Research and development:- Research of market through various surveys to determine current changes of trends along with needs, wants, preferences and demands of clients. This will facilitate to make an effective and efficient strategies or policies or build appropriate plan of action to know about actual situation of marketplace. McDonald's observe and analyse the several trends in terms of modifies demands or needs of customers to provide correct services. They are usually render some of new concept in their food items by implementing fresh as well as innovative recipes to attract more clients and retain current ones. It will facilitate to improve brand image and maintain stability in organisation in terms of productivity and profitability (Lane, 2016).
Administration:- The administration refers to manage the whole organisation properly through applying various effective rules and regulations. It may involves managing manpower, resources, projects, activities and many more. Task and activities must be carried out through suitable strategies to gain better outcomes. This can be done by building several accurate techniques and methods so that performance of employees will render more outputs fromtheir efforts. Correct plan of action must be prepared to conduct different p4rocedures and events in right direction which results to get better profits. McDonald's utilises several different sections to complete target to making specific food items as per efficiency of staff members to render correct recipe for desired people. Customer service:- The organisation have to make sure about services in terms to deliver it to customers. Apart from attractive productswith packaging and advertisements, they need to make effective technique of serving specific goods or services to clients. This may considered as first impression of brand which should be effective because many times people refuse to take it due to incorrect serving tactics of firm (Mihart, 2012). Achieving customer satisfaction is necessary to improve number of loyal consumers which returns profits to organisation for a long time. McDonald's prefers better technique of serving for its clients by providing food services in order to delicious recipes faster to complete expectations of people. Distribution:- The term distribution can be defined as supply of product to connected stores and other channels from where people can buy that as per their needs, wants and demands. It is important to make proper availability of goods in market top fulfil desired of people. Clients want several essential an innovative features but most mandatory part is that they ant delivery of particular service in right time whenever required. McDonald's are providing their products on their own stores along with rendering appropriate delivery by online booking of clients. Finance:- This section is relevant to money and finds which can be considered as back bone behind various types of procedures and activities. It is mandatory to invest appropriate capital and resources to conduct different operational events. An organisation requires basically human resource and raw material along with machinery or equipments which can be collected through spending huge amount of money. Overall, funds should be applied in company for production process is an essential aspect. McDonald's is an large business dealing at global level then obviously need enough amount to implement a small change in company including all branches all over the world.
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Human resources:- this can be described about staff members of an organisation who purr efforts in correct direction on regular basis to generate better outcomes (Nguyen and Simkin 2012). Their hard work and loyalty towards firm is responsible for success of organisation in terms of achieved profits. Recruitment and selection of employees must be done according to desired qualities, education, experience or skills of them. A candidate should be hired by analysing and evaluating the abilities or efficiencies suitable for specific vacant position in company. McDonald's have an effective policy to appoint desired staff to make delicious recipes as per taste and preferences of people. ICT:- ICT is an abbreviated form of information and communication technology which is utilised by various companies to make their work little bit easy. There are different kinds of software that are implemented by an enterprise to make their work more faster along with generating better outcomes. In terms of promotional activities, firms are using several social networking sites to display advertisements to make people aware about it. McDonald's adopts some of effective and efficient applications to make gain online order and track them correctly yo render appropriate delivery of food items. Marketing:- Marketing is an important technique by which productivity and profitability of company can be increased. There are various types of promotional procedures such displaying banners,posters,emails,advertisements,pamphletsandmanymore.Itisconsideredas mandatory task to make people aware about product in terms of its features and innovations applied so that clients take interest to buy them. McDonald's is usually implement their attractive logo to make it popular amongst people and grab more market share through their fresh or creative recipes rendered to customers. Sales:- Sales of any company are responsible to measure profitability and brand image of it. Promotional activities are conducted to improve sales of organisation (Papasolomou and Melanthiou,2012).Anenterpriseisrequiredtomakeseveralinnovativechangesand modifications into product or services to gain satisfaction of clients. McDonald's utilise different kind of delicious recipes to provide desired food items as per taste and preferences of people to gain more customers to improve sales. Production:- This can be described as manufacturing processes of product in particular organisation which help to prepare desired goods or services to fulfil expectations of people. It depends on basically production workers and equipments to create better outcomes on regular
basis in such manner so that client get satisfied. McDonald's are appoint well skilled employees to prepare food items delicious along with serving them properly to customers. TASK 2 P3 Compare ways in which marketing mix can apply Marketing mix – McDonald Vs Burger King Marketing mix is a tool to develop a business, it is simply a planning to promote a firm in various ways. It is important to pull customers towards door and make them stay within company only, but this is not only task to do for a business, there are several reasons which attract customers with a generating a charisma from which a user can't escape. When individuals head to market area, they sees many things which are appealing them, but not everything get the attention, there is a versatility in market that allure customers for the first time, and make them stay with it forever. The thing which catches attentiveness of users, is called marketing, here McDonald and Burger King are already on perch of food industry, they both are offering a huge range of same kind of products, but there still some difference, that impacts on business, therefore marketing mix is defined below:
Marketing mixMcDonaldBurger King ProductMcDonaldisthebiggest leadingfastfoodrestaurant, and it primary sells consists of breakfast,burgers,fries, chicken,sandwiches,snacks, beverages,desserts,and shakes,alongwiththese productsitsoffersahuge variety of edible items such as cheeseburger,hotfudge, strawberry sundae, etc. it has a vast pool for epicure. Burger King is another quick service fast food restaurant, it has a line of delicious food such as burgers, chicken, fish, sides,salads,veggies, beverages,sweetsand desserts. PriceAcustomermaketheirown perceptionaboutproduct worth,aproductmattersto them more than a entity. For an individual price matters a lotagainstwithdrawing product (Perreault, 2010).A quality item with a low cost is always popular among people, andgetaplaceinmost demandingproduct.That's whyitdevelopednew strategies to satisfy a customer. It includes distinct techniques forsettingpricelikevalue pricing, active rate, cost plus pricing,pricediscrimination, Burger King has new criteria for pricing, cost leadership that aidtominimizecostsand prices.Ithasappropriate pricing for marking price of products,itincludesmarket orientedpricingstrategy, which us a direct approach of pricing, and involves set price accordingtomarket conditions,dependingon supplyanddemand,also comprising other competitors. Ontheotherhandbundle pricing strategy is a subsidiary pricingapproach,where customerspurchasesvalue
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PlacePlacereferstoaphysical location and distribution along with providing products to end user.McDonaldhasalong chain of distribution strategies in separate countries, though it offers home delivery in some countries, but this service is notofferinginseveral countries. Therefore, they are opened for 24X7, that makes all channels are available for supplying items to the user. BurgerKingproductsare availingitsproductsin restaurant across the world. It hasvariousvenuesthatare used to transact its products to targetedconsumers.Ithas modernchannelsfor distributionlikerestaurant, mobileapp,websitefor deliveries,specialcoupon offers and freebies. PromotionTheyareusingitseffective brand name and advertisement slogan: I'm loving it. Thisfirmhasusedseveral commercials,websitesand advertisements for promotion. PeopleThisfirmisfocussedon suggestions of employees and theirdevelopmenttorender properservicefordesired customers (Pike, 2015). Theyareconcentrateon feedbacks and requirements of clients and involve employees it meetings to provide better products. ProcessTheyhaveaneffective proceduretomakebetter recipes to attract more people. Burgerkingfocuson manufacturing of products to improve quality of food items. Physical evidenceMcDonald's is using its logo and slogan for advertisement. This firm use brand image for promotion. 12
TASK 3 P4 Produce and evaluate basic marketing plan Marketing plan ofan organisation isnecessary to carryingoutvariouskindof promotional procedures in effective as well as efficient manner. It will facilitate to make people aware about people and render support to make better outcomes on regular basis. This will helpful to boost up productivity and profitability. Overview of company:-It is described as fast food limited service restaurant that deals at global level to provide more delicious recipes for customers. It has its own stores or branches that arearound 3500 all over the world in approximately 100 nations. Employees hired by this organisation are more than four million at global stage to render better fast food services in proper time. They have almost 70 million clients who visits in their restaurants on daily basis for purchasing food items. McDonald's is considered as that firm having largest share on fast food industry and it's closest competitive organisation is YUM Brands. Vision and mission of company:-The vision statement of McDonald's is to become leading and fast food provider at international level. They want to provide food services by takingcare of cleanliness, quality, service and value which makes every person smile. Now, mission idea is to build best enterprise for staff members and render food products with superior operating systems to every client. It also includes preparing favourable direction to make brand more strong by developing operational procedures with innovative techniques. Situational analysis:- Several elements are existing that impacts on aspects of and organisation in positive and negative way (Swenson And et. al., 2014). It involves both internal as well as external components that must be observed and analysed by company to reduce threats and enhance opportunities. It is mandatory to consider all theses factors factors while preparing strategies or policies to carrying out desired processes. Internal analysis:-The factors existing within the environment of an organisation such as total assets, revenue, staff members, funds, events, resources, strategies, policies, rules may impacts on company. The management of company, in terms of administrating various aspects of an enterprises. All these elements are includes into internal analysis that affects events of firm. External analysis:-There are different factors which may impact on organisational procedures. Some of them which are necessarily evaluated by McDonald's are described below: 13
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Political factors:-There are various kind of political factors that are surviving at that specific place where branches of McDonald's are running. The firm have to take care of their policies while carrying out their necessary activities for generating better outcomes by avoiding their negative impacts. Economic factors:-These factors are relevant to money or income which is should be measured by on regular basis to create. It is related to annual financial gain of organisation and stability of McDonald's. (Source: PESTEL Analysis, 2018) Social factors:-There are various kind of societal rules and norms which are mandatory to be followed by McDonald's while manufacturing unique products and displaying promotional activities. Technological factors:-Various technologies are adopted by different kinds of organisations including equipments and soft-wares but it is mandatory to follow legal limitations. McDonald's have to consider these rules and norms to improve their performance and gain benefits. Legal factors:-Various legal rules and regulations are established by government authorities which are essential to follow in terms of paying taxes on time formalities 14 Illustration1: PESTEL Analysis
of launching ventures at new place to expand business. These aspects must be fulfilledbyMcDonald'stoavoidthreatsandterminationinrunningbusiness successfully. Environmentalfactors:-Environmental issues are rapidly increasing by expanding businesses and introducing new firm (Wirtz, 2012). Their activities and events are somehow harmful for natural environment. To save nature, government has prepared some rules so that McDonald's must use biodegradable things and ozone friendly material. Competitive analysis-Porter's five forces Threat of competition:-In current scenario of competition, McDonald's has various competitors then it is necessary to observe and analyse strategies of competitive firms. This is essential to make effective modifications in policies to compete with them, successfully. Threat of new entry:-When any fresh venture of McDonald's is entering in market with new concept then they have to establish their own brand image and compete with existing organisations. Bargaining power of buyers:-When a buyer has various choices of brands to purchase single product or service then they have more power. The company have to establish something unique or innovative so that people prefer only McDonald's Bargaining power of suppliers:-This can be described about suppliers in terms when McDonald's is facing rivals of competition then they need to collaborate to maintain its stable position in market. Threat of substitute:-There are various kind of firm that are producing substitute products and try to grab more market area. McDonald's have to take care of all these enterprises to maintain their profitability. SWOT analysis StrengthsWeaknesses Effectiveadvertisementsandbrand imagealongwithcollaborationwith coke. Provide space to kids, appoint Theyhaveweakenhancingoftheir fooditemsandmanagementof 15
trainedemployeesandcompetitive price. franchise or joint venture. OpportunitiesThreats Theyarerunningbusinessatglobal level as they have internationalisation and growing dining out market. Theyhavemorehealthconscious clientsandfacingglobaleconomic recession. Identification of target market:-Target market of McDonald's includes the segment of children and youngsters because they has business of fast food products with innovative and delicious recipes to attract clients. Fast food items are generally preferred by youngsters so that they have to make new products as per desires of customers. Formulation of marketing budget:- Marketing budget Particulars 1st year 2nd year 3rd year4th year5th year Capital320002200440025007200 Investments13500142001500014400 Total3200015700186001750021600 Marketing expenditures Promotion80007000500040006000 Sales50002000400050002000 Marketing40001500230025001200 16
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Internet Marketing30002000500040005000 Networking150065007000140001800 Printing8009007003008500 Advertising50008000750016003500 Total2730027900315003160028000 Allocation of resources:-It is important to make appropriate allocation of different types of resources in more effective as well as efficient way to gain better results. McDonald's have to allocate sources to employees along tasks as per their field of expertise so that they can perform in better manner to generate desired outcomes. Execution of plan:-McDonald's have tomake an effective plan of action to conduct effective marketing activities to attain better output. Every step of planning should be in appropriate manner to create desired results. CONCLUSION The above report had concluded that there are various kind of promotional activities through building several effective policies to gain better profits. It is important to improve sales and benefits of an organisation by efficient strategies of an enterprise. Planning should be done before carrying out marketing procedures so that they get appropriate results as per desires. 17