Marketing Mix Analysis for McDonald's Home Delivery

The assignment requires students to analyze the marketing strategy of McDonald's Home Delivery, including competitor research, market segmentation, and budget planning. It also involves identifying the strengths, weaknesses, opportunities, and threats (SWOT) of the company's new feature 'Home Deliver'. The analysis should be based on a case study of McDonald's competing with Burger King, requiring students to estimate expenses and prepare a budget plan. Additionally, it includes a review of relevant literature on marketing theory, including books and journals such as 'Marketing Theory: A Student Text' and 'The Evolution of Services Marketing'.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Roles and Responsibilities of marketing functions of McDonald........................................1
P2. Roles and Responsibilities of marketing relate to the wider organisational context............3
P3 Different ways in which organisations apply the marketing mix to the marketing planning
process to achieve business objectives........................................................................................4
P4. Marketing plan of Mc Donald's............................................................................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is the concept of buying and selling of goods and services. It includes
advertising, selling, delivering products, market research and so on. There main motive is to
satisfying their customers need and want. They also helps in promoting their product and
increasing their sales. It is a tool or technique which helps an organisation for enhancing their
growth and success (Baker and Magnini, 2016). This project is about McDonald's, it is an
American fast food company which is founded by Richard and Maurice McDonald's in San
Bernardino, California, united states in 1940. This company was started their business as a hum
burger stand. In present context, it is considered about role and responsibilities of marketing
function in an organisation. It is interlinked with every department of a company. It also shows
marketing mix of two different organisation.
TASK 1
P1. Roles and Responsibilities of marketing functions of McDonald
Marketing is a activity which helps in promoting their business. It is a concept of buying
and selling of goods and services. Their main motive is to satisfying their customers demand
and earn more profit. It also helps in influencing people for purchasing their product and
services. It considered four steps in process of marketing and that are:
first step of marketing process is to analyse the whole market and helps in determining need and
wants of customers.
After analysing a market, there next step is to target market area for finding what kind of product
and services are going to be proffered by company.
After deciding target market, they develop marketing mix strategies which helps in promoting
their product and attracting customers.
At the end, execute a whole plan and procedure for approaching customers.
Marketing is a buying and selling concept which is plays an important role in organisation.
Through the help of marketing, a company can promote their product easily and attract more
and more people toward their product. It also influence target market for purchasing their
product and helps in increasing their demand and growth (Baker and Saren, 2016). Further along
it also helps in forecasting future demand of a product so they can fulfil it according to their taste
and preferences. In context of McDonald's they analyse a whole market through which they

added some new products according to the customers demand like French fries, Sandwiches, and
so on. Some Role and Responsibilities of marketing manager are discussed below:

 Marketing information management: It is a process of collecting, classifying,
analyzing, an information which helps in taking right decision at right time. It is a
research activity. Research helps in finding actual demand of customers. This strategies
gives an information which helps a company for achieving competitive advantage at
marketplace. In present context of McDonald's, their marketing managers helps in
determining new demand of customers and also what kind of strategies is used by their
competitors (Campbell and Fabos, 2018). Through this research they added some new
products or new flavor in their products which make them different from their
competitors. Like Frenchfries, Sandwiches, and so on.
 Financing: Money is a key function of an organization which helps in performing
business activities and managing work on time. In an organization every departments are
interlinked with each other. Same as marketing department is also connected with finance
department which helps them providing an information and estimating a budget for
performing various activities effectively. In context of McDonald's, finance manager
helps in preparation of effective budget plan for future benefits. This department do their
work with every department of an organization for evaluating financial activities.
 Promotion: It is a concept of attracting customers towards their product or services. In
marketing department this function plays an very important role which helps in providing
information regarding their product or services. It also helps in generating awareness and
knowledge at market. In present context this function is also helps McDonald's for
increasing their sales and attracting customers towards their product (Desselle and
Alston, 2016). In McDonald's their marketing manager carries out various marketing
activities such as advertisement, sales promotion, publicity, and so on. Along with it also
helps in attracting more people towards their product and though this cover their target
area.
 Product and service management: This function is based on making decision in a
company which helps in deciding what to sell, how to sell, whom to sell and where to sell
their product. The main role of this function in marketing department is to managing,
performing and improving in marketing mix and their strategies which helps in
identifying marketing opportunities. In context of McDonald's, according to their
customers need they bring some changes on it by analyzing the whole market and also
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collecting an information regarding this. They also focuses on keeping their product
different from their competitors.
 Distribution: It is a mode through which they transfer their product or services from one
place to another and deliver it to the end number of people. In marketing department this
function is says about that they deliver their product and services to their customers on
time (Duffett, 2017). In this function marketing manager is wholly responsible for
managing their work. In McDonald's marketing manager helps in providing products on
time to their final customers effectively and efficiently.
 Selling: In marketing their main concept is a buying and selling procedure which helps
in generating awareness regarding their product and services in a marketplace. In
marketing department this function says that to provide a product or services to their
customers on time. In present context of McDonald's their main motive is to maintain a
proper stock for future benefit which helps a customers to get it easily on time.
TASK 2
P2. Roles and Responsibilities of marketing relate to the wider organisational context.
Marketing is a process of buying and selling of goods and services which also helps in
attracting customers towards their product and services (Griffitts, 2016). It involves various
activities like advertisement, selling and delivering the product to end consumers and also their
main motive is to satisfying their customers. Marketing is a concept which interlinked with every
department of an organisation. Such as:
 Marketing and Production Management: Production management is a process of
planning, organising, directing, coordinating and controlling. It is a very important
function of a production department. So, both marketing and production department are
interlinked with each other. It also helps in attracting number of customers towards their
products and services. The reason behind of McDonald's success and growth in market is
because they are using various promotional activities. In McDonald's production
department manager communicate with marketing department manager for doing work
on time and make a proper strategy of doing it in an effective manner.
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 Marketing and human resource management: human resource department has main
function is to recruit or hire a best candidates for vacant position which helps in
achieving organisational goal and objectives. It is a very important concept of an
organisation. So, managers of both marketing and HR department should communicate
with each other for managing their requirement on time (Karnaukhova, and Polyanskaya,
2016). In context on McDonald's, marketing department manager communicate with
human resource department manager for hiring suitable candidate for vacant position in
their department. It also helps in increasing their sales and maintaining relations with
their customers.
 Marketing and Finance management: Money is an essential key function of an
organization which helps in performing business activities and managing work on time.
Same as marketing department is also connected with finance department which helps
them providing an information and estimating a budget for performing various activities
effectively and efficiently. In context of McDonald's, marketing department manger
communicate with finance department manager at the time when they want fund for
achieving promotional activities. Like advertisement of the product and so on. It helps
marketing department to get proper fund for their work on time and for achieving their
target.
 Marketing and Research and Development management: Research and development
department helps in finding more information and innovating some new product or
services. It also helps in achieving organizational goal whereas marketing department
providing some information and some better services to their customers. In context of
McDonald's, marketing department manager communicate with research and
development department manager for gathering information related to their target market
(Kayabasi, and Mtetwa, 2016). It also motivate R&D department to make something new
which attract more and more people and makes position at market place and it also helps
in increasing their profit.
P3 Different ways in which organisations apply the marketing mix to the marketing planning
process to achieve business objectives.
Marketing Mix refers to a set of tactics, action and strategies which is used by a company
to promote its brand along with its products. Marketing Mix is all about putting right product at
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right place, at right time with right price (Lane, 2016). It is used by every company to achieve
success and for maintaining the sustainability at marketplace. It is used as a pre defined
objectives for McDonald's. It consists of 7ps which includes product, place, price, promotion,
process, people, physical evidence. McDonald's marketing mix is different from its competitor
which is Burger King.
Components McDonald Burger King
Product McDonald's started their
business by selling chips and
burgers first, later on
according to the taste,
preference and needs of
customers they adopt change.
They provide variety of
products to their customers
which includes vegetarian as
well as non-vegetarian food,
frozen deserts and many more.
Burger King first introduce
hamburgers, french fries, milk
shakes, soft drinks. According
to customers demand and need
it started adopting change and
introduce new products.
Burger king expanding its
menu by introducing Whopper
sandwich.
Price McDonald's attract their
customers by offering low
price meal as compared to
other competitors. McDonald's
prices are neither so high nor
so low.
Burger King uses
psychological as well as
competitive pricing (Morgan,
2016). So as to high price of a
product ensures good quality
of product and low price can
attract large number of
customers .
Place McDonald's adopt different
distribution strategies. In some
countries they offer home
delivery services to their
customers (Nirschl, and
Burger king presently works in
79 countries with
approximately 13000 outlets. It
is also operated in India as it is
one of the most popular brand
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Steinberg, 2018.). Some of the
McDonald's store open 24*7. it
has approximately 36,258
restaurants in more than 100
countries.
across the world.
Promotion McDonald's uses different
promotional tools for
promotions such as television,
social media platforms,
newspapers (Desselle,
Zgarrick and Alston, 2016).
They provide discounts, offers
and coupons to attract
customers.
Burger King adopts different
print media ways for
promotion like magazines,
newspapers. They also
organise and sponsor events
for promoting their brand.
Process McDonald's has a separate
area for cooking which is clean
and hygiene. Number of
activities are performed by
McDonald's to deliver its
products and services to
customers.
Burger King is successful in
more than 71 countries
because they maintain quality
and taste of product.
People McDonald's service is slow
than Burger King as they focus
on quality of the product and
services they offered to their
customers (Pappas, 2017).
Burger King is known for its
fast delivery services to their
customers (7 P's of marketing
mix,2019). Along with this
they offer many choices.
Physical Evidence Physical evidence of
McDonald's is is not so good
as compared to Burger king.
They maintain clean and
Physical evidence of Burger
King is good as compared to
McDonald's. This will help
them to attract more and more
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hygienic environment with
attractive interiors.
customers and provide them
safe, healthy and hygienic
environment.
P4. Marketing plan of Mc Donald's
Marketing Plan: A marketing plan is a written document or report which includes all the
marketing tactics and strategies which company will perform by the company in the upcoming
year. In today's competitive market company should analyse customer's taste and preference to
maintain the sustainability at market place (Rancati, and Capatina, 2016). This document
includes all the actions taken by the organization in order to achieve success in the competitive
market. It is not a permanent or static document, as the business start growing, new and latest
marketing strategies should be develop by Mc Donald's. Some important steps which is included
in the marketing strategy of the company:
Company overview: McDonald's is an American based fast food company, founded by
Richard and Maurice McDonald in California, USA in 1940. It is one of the largest restaurant
chain across the world, best known for its french fries, hamburgers and cheeseburgers and later
they started adding new products like sandwiches, cold drinks according to their customers
demand. On an average company serves almost 69 million customer in a day, in their
approximately 36,900 outlets in more than 100 countries across the world.
Vision & mission: Vision of McDonald's is to provide best quality products and services
to their customers in reasonable price, so that they can attract each and every group. Its mission
is to be customers favourite place to eat and drink by providing them healthy and comfortable
environment.
Objective: McDonald's objective is to expand its current product line by launching new
products in the market (Stern, and Porr, 2017). They are planning to introduce “Home Delivery
concept”. For this company should adopt SMART objective which helps them to make it
successful and capture large number of market share.
STP approach: It is the modern marketing approach which is commonly used by every
company to attract and retain large number of customers. This approach was first introduced in
1950. STP stand for segmentation, targeting, positioning.
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1. Segmentation: It is the most important and brainstorming activity. It is the process in
which company started segmenting or dividing their customers, so that they can make
strategies accordingly. McDonald's segmented their customers on the basis of some factor
which help the manager to make strategies and plans. According to the requirements and
needs of customers company start manufacturing their products.
2. Targeting: After completing the segmentation process, company start focusing on their
next process which is targeting. McDonald's choose and target small sections of market.
By selecting target market it will become easier for the managers of McDonald's to make
strategies and plans. There are some points which a manager should analyse before
selecting segments (Rancati, Gordini and Capatina, 2016). These points are companies
objectives, resources, structure of segment and many more.
3. Positioning: It is the process of how company is aligning its products and brand in the
target market. This process is used by McDonald's to promote brands according to the
information gather by the company about the nature, taste, preferences and behaviour of
customers.
SWOT Analysis: This framework is used to evaluate the competitive position of a
company. This tool is used to analyse all the external as well as internal factors which affects the
environment of an organisation. Along with internal and external factors, current as well as
future potentials of a company has also been analysed by the managers. This analyses help
managers to make future plans and strategies. Following table shows SWOT analyses of
McDonald's :-
Strengths Weaknesses
 McDonald's is one of the biggest food
chain brand across the world.
 Financial stability which helps them to
innovate new products.
 Special offers to attract and retain
customers.
 Health conscious people prefer healthy
food.
 New products are unable to attractive
customers.
 It is quite difficult to find prime
locations to open their restaurants.
Opportunities Threats
 Healthy foods can attract more health  Change in government policies can be a
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conscious customers (Lane, 2016).
 International expansion with variety of
products can be an opportunity for the
company.
threat for McDonald's.
 Other brands can strengthen the
competition.
Budget: It is a pre-determine financial plan, which is prepared for estimating expenses
and revenues, required for future implementations of marketing plans and strategies. Budget plan
of McDonald's are as follows:
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 6000 8500 12000 14500 18350
Investment 15000 16000 24500 32500 14000
Total 21000 24500 36500 47000 32350
Marketing outlay
Promotion 7000 3600 4400 3200 3300
Sales publicity 2100 2400 3500 2400 2200
Direct selling 4400 2700 6100 3400 4500
Total 13500 8700 14000 9000 10000
From the above given table it is clear that, for introducing new feature “ Home Deliver”,
Company have to invest almost 15000£, along with this, they require 7000£ for promoting this
new feature (Campbell, Martin and Fabos, 2018).
McDonald's have to make strategies and plans according to their customer needs. For this
they have to check P's of marketing mix, which is as follow :-
Components McDonald's
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Product Financial position of McDonald's is strong
which helps them in innovating new products.
Place This feature should launch in India, as it will
help in attracting large number of customers.
Price Use of different ingredients causes a variation
in price. McDonald's offer low price product as
compared to their competitors.
Promotions McDonald's should promote this feature by
using social media platform, advertisement,
TV.
People Employees should be well educated and
trained, so that customers do not face any kind
of problem dealing with them.
Process By providing them home delivery within given
time period, they can build trust and retain
customers for a long duration (Baker and
Magnini, 2016).
Physical Evidence McDonald's Store should be clean and hygienic
so that customer ensure healthy environment
while visiting and having food. Staff should be
in proper uniform and well mannered.
CONCLUSION
From the above mention report it has been concluded that, market is a place where goods
and services are exchanged at a particular price. For becoming a constant part of market,
company has to evaluate current and future trends and make strategies accordingly. Companies
have to analyse opportunities and select a target market for operating its business functions.
Managers of McDonald's plays an important role in all marketing mix activities. McDonald's is
one of the largest fast food restaurant across the world but have tough competition with Burger
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King. McDonald's need to analyse the marketing strategy of their competitors before launching
new feature of “Home Deliver”. For promoting new feature in the market company need to
estimate all the expenses and prepare a budget plan. Along with this, STP analysis is important in
identifying various market segments and also help in budget planning.
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