McDonald's McCafe Expansion Strategy

This assignment analyzes McDonald's expansion strategy for its McCafe concept. It examines the company's marketing mix – product, price, place, and promotion – in the context of entering the cafe market. The analysis includes an assessment of McDonald's strengths and weaknesses, as well as opportunities and threats presented by the external environment. The assignment emphasizes the importance of understanding market trends and developing effective strategies for growth and profitability.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and responsibility of marketing functions...................................................................1
P2 Relation of marketing functions to organisation at wider context.........................................6
TASK 2............................................................................................................................................9
P3 Comparison of marketing mix planning by different companies..........................................9
TASK 3..........................................................................................................................................12
P4 Basic marketing plan of company........................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing is the group of strategies in order to identify various needs of customers and
analyse and execute various plans resulting in accomplishing desires of consumers effectively in
marketplace through variety of products. In this present report various marketing function are
discussed along with defining its relationship with other functional unit of organisation. The
various marketing strategies followed by from in order to develop marketing mix pan are also
discussed in this assignment.
McDonald is engaged in developing various marketing plans in order to attract more and
more customers towards their products and services. The history of McDonald began in 1940,
established by Richard and Maurice McDonald in San Bernardino, California. The company is
dealing in Food and beverages sector serving its services in hospitality industry through their
restaurants chain. The eating house is serving fast food like cheese burgers, French fries,
Chicken burger, soft drink and Cold drink. The companions are serving in global market in order
to deliver its services to the worldwide and earn more probability. Organisation is having more
than 375,000 employee contributing in the success of venture. Enterprise is serving
approximately in more than 36,9000 locations worldwide (Berkowitz, 2016). Firm is following
flat organisational structure in order to bring more efficiency in organisation of venture through
effective management strategies in stores. The McDonald is having a manger over the employee
working in a single store of firm which is responsible in managing all the operations like
recruitment, Selection, marketing plans, financial control of restaurant chain in market place.
Charles handy defines various types of organisational culture like role, task, power and person
culture. Most of the eating house along with the McDonald are following power culture in their
functioning in order to make profitable and faster decision related to growth of firm.
TASK 1
P1 Roles and responsibility of marketing functions.
Marketing strategies from the identification of customer wants and ends with the
implementing various approaches in order to deliver the finished good to consumer to fulfil all
his wants (Blythe, 2012). Marketing is an wider concept which is related with the development
of huge customers base through advertising products and services along with developing various
strategies in order to deliver goods with stated quality through analysis of consumer desires.
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Nature of marketing can be defining as that this is an continuous process through which
company develop various plan in order to stimulate customers to make purchase with firms.
The current marketing trends involves engagement of various companies in building
good relationship with their existing loyal consumers in order to enhance their satisfaction level.
Through an survey it can be stated that marketing trends and tastes are changing continuously in
the business environment and regulated by various factors. Present marketing strategies of an
firm are dealing with various changes in preferences of customers in order to serve better quality
products in order retain users with the brand in order to develop an long term sales of company.
While the future trends of marketing can be defined as the utilisation of new technology in
defining their commercialisation tools and techniques (Brooks and Simkin, 2011). The various
organisation can develop a strong base of marketing over the medium of internet with helps if
various social networking sites. McDonald can develop various marketing mix plan related to
product, price and place of promotion to attract more and more numbers of consumers.
Gamification is an new trends of marketing which is exploiting the interest of user through
developing various games in order to enhance sales of venture. Digital marketing can be new
developmental future marketing that can bring an larger hike in growth and profitability of any
firm.
Marketing structure defines the division and distribution of task and authority at different
level of hierarchy of functions in organisation. McDonald is following flat organisation al
structure in order to delivery efficient services and lowering various cost incurred by managing
Human resource department budget. Firm is having a single manager who controls the task of
other employee in restaurant chain effective and allocate available resource to individual in order
to achieve goals efficiently (Brooks and Simkin, 2012). Marketing process involves various
activities to develop an plan which contributes in enhanced profitability of firm. This process
involves analysis of available resources and current market position of firm along with analysing
external market environment and its changing trends in order to develop various strategies and
produce an profitable market mix plan in order top accomplish all objectives of organisation
efficiently. Role and responsibilities of marketing department in organisation are defined below:
Financing: This is an important function of marketing department of any of the
organisation working in business environment. Marketing functions is an important resource of
funds that is collected from sales of product and service by sales executives. This is an important
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responsibility of the division that the financial budget of company should be controlled through
the revenue generated by sales department. The successful marketing plan and strategies results
in continuous flow of funds and revenue generation which maintains the monetary budget of
organisation as whole (McDonald’s Marketing Mix (4Ps) Analysis. 2017). Financing also helps
in effective delivering of marketing services to prospective customers in marketplace.
Selling: Selling and marketing are the complementary term. This is the main functions of
marketing division of brand. The McDonald develop various strategies and plans in order to
implement effective marketing mix in practice to attract more and more customers through
analysing their changing choices an preferences through carrying out market survey. This will
ultimately enhance the sales of company. Place of selling is dependent in the number of
prospects in market. If the company is targeting to large number of consumers than the
organisation have to follow various techniques to attract users through social networking and
digital marketing. While the small number of sales can be achieves through personal selling by
hiring few numbers of sales employee to achieve the defined sales figures of organisation.
Promotion: This process involves various tools and techniques developed by marketing
department in order to spread awareness about the products and services of firm in large market
space in order to gain more interaction from the prospective customers of the firm. This involves
various advertising tools like banner, posters, touchers, sales offers, coupon etc. in order to
enhance sales of organisation. The promotional strategy also involves approaches developed in
order to enhance sales through digital marketing, personal selling, telemarketing and public
relation, all these are the advanced approaches in delivering various promotional plans.
Promotional tools helps in developing various priorities and preferences among the consumers
choices in order to build and good sales relation between the client and company (Cabrera and
Williams, 2014).
Pricing: Following is the important function which plays significant role in development
of growth of organisation. This helps in achieving all the prospective goals and objectives of
sales of company. This can be achieved through developing effective pricing strategy in the
market. The high competitiveness in market leads to development of low pricing strategies in
order to achieve competitive advantage in market. The company can develop new product
differentiation and other benefits to customers which can helps in increasing sales of goods and
services of company many folds. Pricing is the major factors which influence sales of an product
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in market. So. The prices of any goods should be developed according to analysing the capability
of customers to spend in marketplace. The organisation can counter higher competitiveness of
lower prices in market through purchasing their raw material at lower prices in order to decrease
cost of product and ultimately this will contribute in increasing profit over the investment.
Product (Service) Management: This is an important aspect of functioning department
of marketing in organisation as the the company development includes many features and
properties considered in their product development plan through studying the market trends
(Marketing Mix of McDonalds. 2016). The company are also involved in managing their services
effectively through developing various marketing techniques in order to satisfy more and more
consumers through quality services by aiding some of the luxurious facility in their servings like
free home delivery etc. Offering the toys with the basic product of McDonald is part of product
development in order to attract more children towards the product of brand.
Distribution (Channel Management): This is the major function of marketing
department which is involving various activities inn order to deliver finished goods to the
customers effectively in time. This includes various addition to value chain system in the
distribution system in order to enhance the effectiveness of marketing department. The company
can develop an large network of distribution when their is large number of consumer. While the
company can also develop an small size distribution structure in order to develop large number
of sales along with controlling over the various cost incurred in maintaining the intermediates.
The McDonald is using an simplified line of distribution system involving the increase in
numbers of restaurant through opening new subsidiaries and franchises of brand in different
location of world.
Marketing Information management (MIS): This is the company database which can be
used in order to analyse the regular purchase of an customers and their choices and preferences
and the most priced product by an individual (Dibb and Simkin, 2013). This information system
can be used in order to develop an market plan through analysing the review of customers about
the rad products and services. This development of database is an important functions of firm
which can be helpful in implementing new changing according to changing market trends and
customers preferences and taste in they market scenario.
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Marketing external environment is largely affected by various factors (Ebert and et. al.,
2014). The functioning of this department should be controlled through managing affect of micro
and macro environmental factors. Influence of micro and macro environment in marketing
responsibility and function are as follows:
 Micro environment constitutes of suppliers, customers, competitors. There activity
largely affects the functioning of organisation at wider context. The purchasing behaviour
of customers should be controlled through delivering quality services to the consumers.
The organisation should develop various cost incurred in purchasing of raw material
through developing good relationship with suppliers (Dudzevičiūtė and Peleckienė,
2010). The firm should implement various market strategies in order to develop an health
competitive market in marketing scenario to motivate the investors.
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Illustration 1: Functions of Marketing, 2017
Source 1: Functions of Marketing, 2017

 Macro environment largely affects the functioning if marketing to market extent. The
political, economical, legal factors largely regulates the functioning of an organisation
division to large extent also influence the profitability of firm through controlling the
sales department of venture.
P2 Relationship of marketing functions to other organisation functions at wider context.
Every organisation is engaged in different types of tasks and functions that are regulated
by various team working in collaboration in organisation culture. The firm is involved in
distribution of the task in different department in order to bring efficiency in functionality and
resulting in achieving goals and objectives of venture effectively. Marketing department is
having variety of function in expansion of organisation profit. This helps in developing various
tools and techniques in order to enhance profitability of firm (Gamble and et. al., 2011). The
company engaged in delivering service to the ultimate consumers of product is engaged
indifferent type of strategies which helps in attracting more and more customers towards the
brand, by developing god brand image in market. This can also be increased through attracting
the customers by maintaining good relation with them, after pre and post sales of company.
While the B2B company are engaged in various types of activities which develop good
relationship with other companies which is part of the operational chain of organisation product.
The B2B is engaged in attracting other organisation focusing in the marketing strategies related
to product differentiation and product development techniques in practice. So, from the above
discussion it can be concluded the organisation marketing department plays important roles in
increasing sales of firm through maintaining good relationship in B2B and B2C sector. The
marketing division is working in collaboration with other department of McDonald in order to
achieve profitability goals of venture effective.
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Production: Production or operational division of an organisation is highly inked to the
strategies marketing sector of firm (Hospers, 2010). The marketing department develop the
product design according to the choices and preferences of customers in market place and directs
the production department in development of finished goods and services of organisation.
Research and development: This is an another division which is an most important part
of development strategies of organisation. Research and development bring new innovative
changes in the working culture, product and marketing strategies by studying and analysing
changing trends of market along with identify various future growth opportunities available in
the business environment.
Administration: This division of organisation administer all the functioning of firm. The
higher executives along with the marketing department senior executives make relevant
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Illustration 2: Functional Area of Business, 2017
Source 2: Functional Area of Business, 2017

profitable decision on order t enhance the profitability of firm in many folds. The administration
is managing the task effectively through utilising resources optimally. This can be achieved
through analysing various activities of marketing department and comparing with the
performance standard developed by administrative system of venture.
Customer service: This an division which is liked with the satisfaction level of
customers. This is also an important functions of organisation as this is division which helps in
increasing sales of organisation in managing a continuous satisfactory results of customers
through delivering quality services to them (Hsu, 2011). The marketing department develop
various strategies in relation to enhance the satisfaction of consumers by accomplishing the
needs of users.
Distribution: Distribution system of the part of value chain division of organisation. This
involves various activities that is linked with the functions if marketing department as this
develop various policies in the delivery of services and goods to the right user at right time. This
results in developing good relationship with customers.
Sales: This is the sector which make revenue for the firm through achieving defined sales
figure defined by the administrative department of organisation. This can be increased in many
fold through implementing various promotional schemes like offers and sale on products in off
season in order to maintain continuous purchase of goods by prospective consumers of brand.
So, sales department activity is highly linked with the functionality of marketing division (Ionitã,
2012).
Finance: This is the most important department of any of the organisation as it controls
the budget of all other division functional in firm. The marketing department performance is also
linked with the development of new budget for the further investment in growth opportunities
available to the venture. So, the marketing department is ultimate source of revenue generation
for the finance department and making available required funds for the further development and
investment.
Human resource: The human resources department functioning is liked with the
marketing department. As this is the division which provides an motivated sales workforce of the
marketing sector of organisation in order to increase profitability of venture through achieving
sales target efficiently in defined time period.
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Information and communication technology: This is the functions of organisation that
develop an database related to re various functionality of department in order to analyse
performance of firm in future (Khan and Adil, 2013). Marketing department helps IT department
of organisation in collecting data useful for analysing changing trends of market and requirement
of various changes that are to be implemented in functioning of venture in order to achieve
targets McDonald efficiently.
TASK 2
P3 Comparison of marketing mix planning by different companies.
Marketing mix involves various promotional strategies that are developed by organisation
in order to achieve higher attraction of customers towards the brand image and products. This
helping in increasing sales of firm in many folds. McDonald and Cadbury both are engaged
delivering their service in food and beverages sector. But they are following various type if
promotional schemes in order to target different segment according to the products and services
they are delivering to the market. The vaporous approaches of marketing mix planning utilised
by both the companies are described below.
Marketing Mix developed by McDonald: This company is engaged in delivering its
services in the market since 1940. The organisation is involved in serving various of products to
their customers and developed various type of evidences that develop and brand image in
marketplace and helps in managing continuous sales of firm (Malhotra, Birks and Wills, 2013).
The promotional strategies of organisation helps in increasing profitability of firm to large
extent. The firm is engaged in serving their services in worldwide. Product: This is the major part of the marketing mix through which company is
promoting its profitability. McDonald is serving product like burger with many variation,
chicken burgers, French fires and soft drinks. This is the main aspects which attracts an
customers towards brand. Price: Pricing of an product should be in competitive range of other company product.
The higher prices of same goods will leads to increase inn prices. The McDonald is
focusing in attaining cost leadership inn market through their serving at very low prices
in affordable range. This is the main promoting tools which increase sales of company.
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 Place: Selection of place should be appropriate while developing any promotion plan in
market. The place should comprise of large number of prospective customers who are
having higher power purchasing power. McDonald is having developing good strategies
in selection of their stores location which is nearby all the main places of cities consisting
large number of prospective consumers (Peter and Donnelly, 2011). Promotion: Promotional strategies and plan involves various types of campaign
organised by company in order to spread awareness about the organisation product to
larger customer base. Firm is engaged us utilising various types of the tools like sales,
offer on various occasions etc. which helps in increasing sales of the venture in many
folds and contributes in higher profitability. The promotional tools used by the McDonald
can be the extra complementary product along with main order which helps in motivating
consumers to make purchase like toys with burger is an major promotional tool of firm. People: Services industry success if highly dependent on their people. Person serving
delivery of brand should be motivated and able to deliver efficient quality of services to
the consumers. McDonald is having good workforce working with them in order to
provide an satisfactory services to the consumers and helps them in involved in
continuous purchase with the brand. Process: The process constitutes of various activities that relates with the how services
and product are delivered to the customers of company. Company is offering various type
of services like Mc-drive which enable a person to make faster purchase in hurry without
much waiting for their order because of faster services of organisation. This also
contributes in higher sales of firm. Physical Evidence: Physical evidences are the things which satisfy the quality of brand
through their logo, infrastructure and interior in stores. This is highly motivating force of
an consumer which attract towards repetitive purchase of company product. Their
McDonald stores red interior with comfortable infrastructure and logo a big “M” attracts
consumers towards brand. This provides an authentication and trust of consumers
towards brand.
Marketing mix of Cadbury: This is an multinational company engaged in delivery
confectionery terms to the customers. Founder of organisation is John Cadbury, established in
1824. The company is having large successful history. The company first store is established in
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Birmingham, United Kingdom. The company is pricing employment to about 71657 employees.
Company product are chocolate bars, biscuits, desserts, ice-cream etc. Product: The company is having variety of product that helps in attraction more and
more customers of different segments towards toe company. Organisation is attracting
children through their eclairs candy and gems. While the health conscious customers are
attracted through the glucose perk and chocolate is most liked by the youngsters. Price: Prices of the product are in the competitive range of competitors of company. The
organisation is highly focusing ion the pricing of every products of firm. Cadbury is
having price ranges both low and high which attracts all type of customers towards the
venture product. The cadbury milk chocolate is company in variety of products starting at
different pricing ranges which are inn budget range of various customers. Place: The company is having an large distribution system which make cadbury product
available in all stores. The firm is focusing on its distribution chain largely in order to
make available to every customers which are willing to purchase chocolate bars and
beverages of cadbury. The firm is using place in their promotional advertisement in order
to achieve higher sales like the new cadbury bar is having best cocoa from the Ghana
which results in increased sales figure in many folds. Promotion: The promotional scheme of the company is successfully earning revenue in
the market. The promotional schemes like offering various products along with single
product. Like tattoo in their chocolate eclairs, types with cadbury gems. The various offer
ion the valentine, Christmas season is another highly successful promotional tool of
company. The cadbury is messaging through their advertisement by representing cadbury
as substitutes of sweet in festive season (Rundle-Thiele and et. al., 2013). People: People are highly motivated to deliverer their services to the customers through
providing quality products and efficient delivery of goods to consumer through
organisation distribution chain. Process: The company is engaged in various type of process which helps in promoting
the nrand image. The various process like visit to the cadbury manufacturing plan enables
consumer top know about the quality check of organisation and helps in trust towards
company products.
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 Physical Evidence: The cadbury logo like a smile results in attracting customers towards
the company and helps in building brand loyalty.
TASK 3
P4 Basic marketing plan of company.
Introduction- The marketing plan of company helps in increasing profitability of firm
through achieved defined target in specified time by higher authority of organisation. The
marketing plan developed by McDonald in order to expand to business in overseas through
establishing McCafe.
Industry review- The Mc Donald is engaged in delivering their services in the food and
beverages industry. The particular industry is growing with faster rate with changing needs of
customers and people are becoming more interested in eating outside.
Objectives of McDonald's- The goals of McDonald in order to expends the business is
establishment of Mc cafe in various locations worldwide in order to target wider range of
customers that will contribute in higher profitability of firm.
Marketing mix analysis- the marketing mix developed by Mc Donald company to
promote their new marketing plan i.e. of Mc cafe in Australia is discussed as follows:
Product: The products delivered in the new Mc cafe is coffee and fast snacks which are
delivered along with maintaining quality services in the cafe.
Price: The prices kept to each products in Mc cafe should be in competitive range of
other competitors dealing in same product and services line.
Promotion: The marketing communication also involves means of spreading the
awarenesses about the Mc cafe by providing different discounts offers, off on first purchase and
through providing quality services to the customers in order to enhance sales of firm.
Place: The place used to promote Mc cafe can be shopping centres, colleges or busy
streets and the places where large number of the students are present.
Market analysis- Taste and preferences of market helps I development of various
strategies in order to develop new product and new concept in market against the other
competitors plans in order to gain competitive advantage (Pike, 2015). For any marketing plan it
its necessary to target an segment of customers which will be the prospective consumers of
services by the new concept of organisation. The customers for the Mc Cafe can be coffee lovers,
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young college going students etc. McCafe can be prospective strategy for the McDonald’s
expansion and marketing plan for the growth of the company. The marketing plan of McDonald
helps in increasing the profitability of organisation in many folds through analysing market
trends and needs effectively and develop an profit earning new marketing strategy for the growth
of McCafe in different countries of world. The company should also access the level of
competition ad threat from the higher competence of their competitors who are already engaged
in developing services to customers through cafe like CCD, Costa, Starbucks etc.
Company analysis-
Strength: The McDonald is well functioning in market through development of various
type of restaurant in the marketplace of different location. By analysing the current position of
business entity in market its can be analysed the strength and weaknesses of firm.
Weaknesses: One of the weaknesses to the Mc cafe concept for the MC Donald
expansion in market is that organisation is first time stepping in the market of Cafe.
Opportunity: Development of various strategies in order to establish McCafe worldwide
and promote the new concept of McDonald (Pike and Page, 2014). This involves continuous
measurement of effectiveness of marketing and plan developing corrective plan if required in
order to enhance profitability of McCafe in market.
Environmental analysis- It is important to analyse the external environment to develop
effective marketing strategies to promote the Mc cafe in Australian marketplace. The political
environment should be favourable in establishing mac cafe in Australia and the social values and
norms should be considered while developing any working polices in establishing Mc cafe in
market. The idea developed by Mc Donald should be economical and have ability to give
beneficial result in marketplace and should be complied with all the legal laws related with food
and beverages industry like maintaining food hygiene, cleanliness and safety in workplace etc.
CONCLUSION
It can be concluded from above report the companies are following various type of
marketing mix plan in order to deliver an appropriate message to the prospective consumers in
order to attract them towards organisation products and services. McDonald is offering various
types of promotional sales in order to build an large consumer base in market and earn more
probability. The marketing functions is interlinked with the other operations of organisation to
larger extent and manages profitability of firm. Following report conclude that marketing plan
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helps in grabbing various types of growth opportunities in market through implementing
different strategies like cost leadership, product differentiation through analysing current
company position and market trends. The respective companies is developing an market mix in
order top expand its business in various countries like physical evidences of McDonald
restaurants, promotional schemes and offers given by form for their loyal customers etc. The
assignment also conclude that the marketing plans and responsibility is playing very important
role in growth of organisation profitability to an larger extent.
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REFERENCES
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