Application of Marketing Theories: Apple, McDonald's, and Starbucks

This assignment focuses on the application of marketing theories by Apple, McDonald's, and Starbucks. It discusses the use of SWOT analysis for Apple, Ansoff matrix for McDonald's, and marketing mix strategies for Starbucks. Recommendations are provided for each company.

Running head: MARKETING
Marketing
Name of the student
Name of the university
Author’s note

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Table of Contents
Introduction................................................................................................................................2
Application on theories..............................................................................................................2
Application on Apple.............................................................................................................2
Application on McDonald’s...................................................................................................4
Application on Starbucks.......................................................................................................6
Recommendation........................................................................................................................8
Recommendation for Apple...................................................................................................8
Recommendation for McDonald’s.........................................................................................9
Recommendation for Starbucks...........................................................................................10
Conclusion................................................................................................................................11
Bibliography.............................................................................................................................12

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Introduction
Application of proper marketing tools and techniques can help organisations to
achieve competitive advantage in the business world. According to Lovelock and Patterson
(2015), it is necessary for every marketer to understand the position of the business and at the
same time, ensure development of the business strategies are made which can help in gaining
the loyalty of the customers. The assignment focuses on the application theories that are
applied by three renowned companies for being successful in the market. The focus is on
companies like Apple, McDonald’s and Starbucks and the application of marketing theories
that lead to success within the organisations.
Application on theories
Application on Apple
The application of SWOT analysis, for the growth of market can be undertaken. The
reason for the application of the SWOT strategy for Apple is the fact that the company need
to understand the strengths and weakness that exist in the market it continues its practises. At
the same time, opportunities as well as threats that exist in the market can be analysed based
on which improvement of the market can be done. According to De Mooij (2018), the SWOT
analysis usually helps in understanding the internal capabilities that can be channelled for the
development of a company in the competitive market.
Strength
 Posses strong brand image
 Maintain rapid profits
Weakness
 High price
 Excessive dependence on sales
Opportunity Threat

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 High sales volume
 Development of new product line
 Excessive competition
 Imitation
Table: SWOT analysis of Apple
(Source: Apple.com 2019)
The analysis of the table that depicts the strength of Apple includes an understanding
of the strengths that the company possess. It is seen from the table that strong brand image of
Apple can help in the development of the marketing strategies in a rapid manner. Apple as a
brand is famous all over the world the application of the SWOT analysis can help in the
planning of the activities that can be used by Apple in the future (Apple.com 2019). As stated
by Chaffey and Ellis-Chadwick (2019) it can also help in the development and improvement
of rapid profits for the company, which can enhance the growth of the company as well as
venture into the development of a proper marketing strategy.
At the same time, weakness of the company can be accounted by the fact that it sets
high prices for the products. The reason for this being a weakness is that the middle-income
level customers cannot be able to purchase the products sold by the company (Apple.com
2019). In this regard, Tuten and Solomon (2017) pointed to the fact that Apple looses out on
a large number of customers since, most of the people in a society are among the middle or
lower income group. Hence, due to the high prices, the dependence of sales is which accounts
for the failure to segment the customers of the company (Apple.com 2019).
The opportunities that are possessed by Apple can be accounted to the fact that the
company can increase its sales volume if certain changes are made in the strategies of the
company (Apple.com 2019). Development of a new product line can help Apple to continue
with the manufacturing of new products and at the same time expand in foreign markets.
Thus, the opportunities gained can help Apple to continue its dominance in the business

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market and ensure that it continues with its objective in the competitive market (Apple.com
2019).
The threats of Apple are received mainly from the competitors such as Samsung or
Nokia. The threat is mainly due to the imitation of the products and in a less price that helps
in the development of the competitive advantage in a market (Apple.com 2019).
Application on McDonald’s
For McDonald’s the marketing strategy that the company can apply is the Ansoff
matrix. Based on the application of the Ansoff matrix, McDonald’s can develop strategies for
the future growth of the organisation (Mcdonalds.com 2019). The reason for the application
of this strategy for McDonald’s is the fact that the company need to regain its popularity in
the international market since in many of the countries particularly in Asia, McDonald’s have
failed to maintain its dominance and had to forfeit its business (Mcdonalds.com 2019). Thus,
product-market strategy can be considered as a joint statement that defines the product line of
the company (Mcdonalds.com 2019).
The application of Ansoff matrix can be done based on four metric points that can
help in the growth of an organisation. Each of the four-growth matrixes can help in
understanding a current scenario at the organisations and thus, based on its understanding of
the knowledge products can be offered at the existing market. For McDonald’s the growth
scenario can be the offering of products and services so that it can gain its reputation back in
the market and ensure that proper market development takes place. It can increase its market
share and ensure that existing market segments can be identified by the sale of the products
and services.

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Market penetration
Decrease price
Increase promotion and
distribution
Market development
Customer segmentation
Expansion to foreign market
Product development
Invest in research and
development
Diversification
Maintain synergy of the
products
MARKETING
Figure: Ansoff matrix of McDonald’s
(Source: Mcdonalds.com 2019)
From the figure, it can be seen that each of the growth matrix have certain criteria
which is needed to be achieved by the organisations. For McDonald’s it is necessary that the
company apply the reduction of the pricing strategy so that it can ensure market penetration
(Mcdonalds.com 2019). At the same time, it can improve the promotion and distribution
support by the use of social media. As pointed out by Lovelock and Patterson (2015) these
strategies are considered as the least risky growth option that can help in the development of
McDonald’s in the competitive market.
Apart from this, the market development need to be done based on segmentation of
the customers. McDonald’s can segment customers based on choice of proteins such as
people that consume chicken as opposed to the people that prefer beef or pork
(Mcdonalds.com 2019). Hence, development of the market in a foreign place need to be done
based on the choice of the proteins of the customers. However, as stated by Kotler et al.

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(2016) the risk in this case can be high since for the fulfilment of the new market research
need to be undertaken.
The product development and the diversification can help McDonald’s to ensure that
investment is made in the research and development of additional products (Mcdonalds.com
2019). For example, if the company is willing to sell desserts, then proper research need to be
made for ensuring satisfaction of the customers along with this, diversification in the form of
potential synergy of the product need to be maintained (Mcdonalds.com 2019).
Application on Starbucks
The application of marketing mix strategy at Starbucks can help in the development
of the company by taking into account the competition it faces. The application of the
marketing mix strategies can help Starbucks to develop on its strengths while avoiding the
weakness that exists in the market. At the same time, Baker (2016) stated that the competitive
advantage and the adaptability of the organisation could be guaranteed with the help of the
marketing mix strategies (Starbucks.com 2019). The internal departments of Starbucks along
with the organisation as a whole can work together to ensure that development of the
company takes place in the market.
The components of the marketing mix that can be used by Starbucks for market
development and strategic growth include:
Product: Starbucks is the leading coffee chain brand in the world. It provides an
unbeaten and an unmatchable experience that is relished by the customers (Starbucks.com
2019). However, the flaw with the product is that it can be imitated by the competitors. Its
competitors can imitate the categorisation of the coffee as well as the snacks that are provided
with the drinks and thus Starbucks may find it difficult to cope up with the challenges in the
market and its importance in the development of coffee in the beverage industry

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(Starbucks.com 2019). Hence, strategies based on mitigating the imitation of the products
need to be developed by Starbucks (Starbucks.com 2019).
Price: The price of Starbucks can be considered based on the products it serves. It is
already established that Starbucks serves the best and premium quality coffee and thus, the
prices of the products are usually high (Starbucks.com 2019). The application of the
marketing mix strategy of Starbucks can be considered as positive since it can help in
understanding the prices that the company need to maintain in order to gain competitive
advantage in the market (Starbucks.com 2019). The various prices of the drinks at Starbucks
depending upon its product chains can be considered as a strategic advantage for the
company (Starbucks.com 2019).
Promotion: The promotion of Starbucks coffee and other products are done by the use
of social media as well as online and TV advertisement (Starbucks.com 2019). The company
also helps in the promotion of social activities and programmes, which can help in the
development of the corporate social responsibilities and ensure that it gains the required
recognition in the market. Thus, it can be said that for Starbucks to develop its competency in
the market, it is necessary that the company use the promotion mix strategies in an effective
manner (Starbucks.com 2019).
Place: Starbucks is spread across 70 countries and have a licensed establishment in
about 500 areas (Starbucks.com 2019). The maximum outlets are available at the USA.
Therefore, the place needs to be in areas that can be easily accessible by the people and in
countries that are keen to drink coffee as a main source beverage. Therefore, the place of the
coffee company needs to be based on the evidence that Starbucks can open speciality stores
that can help in providing the required rewards and benefits for the customers (Starbucks.com
2019).

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Recommendation
Recommendation for Apple
Recommendation for Apple can be based on the evidence that the company need to
align itself with the opportunities that are present in the market. It is necessary that Apple
reduce its prices so that it can gain the trust and loyalty of the customers that belong in the
middle-level income group in a society. It is also necessary that Apple ensure that the prices
remain at par with the effort made for the manufacturing of the products so that Apple can
continue with the competitive advantage it possesses in the market. Analysis of the
competitors can help Apple to understand the amount required for success in the market.
At the same time, another important consideration that is required to be made by
Apple is the fact that the product need to be less imitable. As seen from the SWOT analysis,
the products manufactured by Apple can be easily replaceable. For example, the android
phones launched by the company were easily replicated by Samsung in the form of a newer
version of android at less price and guaranteed customer friendly services. Thus, Apple needs
to invest in the technological development of the company so that it can prevent any form of
imitation of the products and ensure that Apple manages to dominate the technological
industry.
Along with this, another recommendation that can be made for Apple is the fact that
the company need to be less dependent on the sales of the products. This recommendation
can be related to the pricing of the products in which Apple is reputed to be high. Hence,
investment can be made in the development of strategies at the market that can help Apple to
continue with its progress in the technological world. Development of a research and
development facility can help Apple to increase its sales volume and ensure that develop new
product lines for the development of the company.

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Recommendation for McDonald’s
Therefore, recommendation based on the product and services provided by
McDonald’s can be made on the application of the Ansoff matrix. For example, one of the
recommendations that can be provided for the development of McDonald’s is the fact that the
price decrease option required for market penetration need to be made after the analysis of
the competitors. For McDonald’s, the closest competition of the company is KFC and Burger
King since these companies sell similar products as McDonald’s. Hence, the price reduction
need to be done based on the prices of the competitors.
At the same time, customer segmentation need to be done based on the geographical
location, culture as well as the preference of the customers. The fact that McDonald’s failed
to consider the culture and related preference of protein in the Asian countries led to the
failure of the company in the region. The customer segmentation needs to focus on the
foreign markets and the customers that constitute the population of the market. Hence,
changes due to the new market can be considered as risky if McDonald’s fail to implement a
proper research strategy based on the customer segmentation in the market.
Hence, research and development of the market can be taken into consideration as
McDonald’s need to ensure that it understands the basis of the needs of the customers. It is
necessary that McDonald’s make proper investment in conducting a thorough market
research based on the preferences of the customers and the products offered by the
competitors. The prices of McDonald’s and the diversified actions need to be based on the
potential relationship that exists between the company and customers. Hence, exploration of
the growth options for McDonald’s can help in the development of the company and can
ensure improvement of its marketing strategies. The application of these recommended
strategies can help McDonald’s to improve its reputation in the market.

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Recommendation for Starbucks
Based on the analysis of the marketing mix strategy, it can be said that Starbucks need
to undergo major changes that can help in the development of the reputation as well as the
product enhancement of the company. One such recommendation that can be provided for
Starbucks is the fact that it needs to develop its pricing strategies so that it can align with the
products sold and gain a large customer base. The customers need to be lured in for the
quality of the products as well as the prices that can be effective for maintaining the loyalty
of the customers.
Along with this, Starbucks need to address the place from where the company can
continue with its business. From the analysis, it is seen that the majority of the stores of the
company are located in the USA and thus, changes in the form of expansion in coffee
favoured countries need to be done so that Starbucks can spread its reputation even further.
However, the company need to keep in mind the licenses that are required for the
development of the stores as various countries have different license codes while setting up
shops.
The promotion strategy of Starbucks can be considered as effective as it uses the
modern methods of promotion. However, it needs to be kept in mind that Starbucks can use
the application of social media to enhance the development of the company and its products.
For example, it can use social media as well as TV advertisement for the promotion of its
products and ensure that it manages to reach the customers it targets. It can also promote
products by providing free sample tasting to the customers that pass the stores of the shop.
These changes can help Starbucks to maintain its reputation.

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Conclusion
Therefore, it can be concluded that the development and application of the marketing
strategies can help in enhancing the reputation and the profitability of these companies
further. At the same time, application of further recommendations to improve the companies
can help in its position in the competitive business market and ensure that McDonald’s,
Apple and Starbucks can continue with its dominance in the business. Despite different
marketing strategies that are to be applied, these companies have the goal to dominate the
business market and to gain competitive advantage in the respectable industries over the
competition that is faced by the companies.

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