Case Study Of McDonald's Corporation - Marketing Principles
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Added on 2020-02-05
Case Study Of McDonald's Corporation - Marketing Principles
Added on 2020-02-05
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UNIT 4 Marketing PrinciplesA Case Study On McDonald’sTable of ContentsIntroduction................................................................................................................................3LO1: Concept and Process of Marketing...................................................................................31.1 Various elements of the marketing process of McDonald's.............................................3
1.2 Benefits and costs of a marketing orientation for McDonald’s.......................................4LO2: Concepts of Segmentation, Targeting, and Positioning....................................................42.1 Macro and Micro Environmental Factors Influencing Marketing Decisions ofMcDonald’s............................................................................................................................42.2 Propose Segmentation Criteria of McDonald’s...............................................................52.3 Targeting Strategy for a selected product/service of McDonald’s...................................62.4 Buyer Behaviour on Marketing Activities of McDonald’s..............................................72.5 Proposal of New Positioning for a selected product of McDonald’s...............................7LO3 Individual Elements of the Extended Marketing Mix.......................................................83.1 Product Development for Sustainable Competitive Advantage by McDonald’s.............83.2 Arrangement of Distribution for the Provision of Customer Convenience byMcDonald’s............................................................................................................................83.3 Pricing Strategies of McDonald’s....................................................................................9Market skimming...............................................................................................................9Penetration pricing.............................................................................................................9Price discrimination...........................................................................................................9Pricing to meet customer expectations...............................................................................9Discount.............................................................................................................................93.4 Promotional Activities of McDonald’s..........................................................................103.5 Additional elements of the extended marketing mix of McDonald’s............................10People...............................................................................................................................10Process..............................................................................................................................10Physical evidence.............................................................................................................11LO4: Use of Marketing Mix....................................................................................................114.1 Planning of Marketing Mix for McDonald’s.................................................................114.2 Differences in Marketing Products of McDonald’s.......................................................114.3 Reasons behind the Differences between International and Domestic Marketing ofMcDonald’s..........................................................................................................................121 | P a g e
IntroductionThe paper is about a business analysis of McDonald's. The company McDonald's is a reputedname in the fast food industry and considered as a market leader. It is also known as thefamous burger industry. The company started its journey in the year 1948. McDonald's hasbuilt a popular brand image with great success[ CITATION DAA12 \l 1033 ]. Marketingidentifies what are the demands of the consumer's demand and tries to satisfy their demands.Besides that, it also analyses various aspects of the company as well as evaluates themarketing strategy of the company. There are various elements to explain and discuss the process in marketing. Therefore, thebenefits and costs related to the orientation of marketing for the McDonalds Corporation, areexplored in this analysis[ CITATION Bow14 \l 1033 ]. The environmental factors both macroand micro factors, influencing the marketing decision, are the critical parts of this analysis. The paper will discuss on segmentation, targeting and positioning for the company. One ofthe most important parts of this paper is the 4Ps of themarketing mix - product, price, placeand promotion, including 3Ps of the additional marketing mix (physical evidence, people, andprocess). After analysing the business of the company, some recommendations can beprovided so that the company can be successful in future[ CITATION EIl14 \l 1033 ].LO1: Concept and Process of Marketing1.1 Various elements of the marketing process of McDonald'sThere are four elements of the marketing process are situation analysis, marketing strategy,marketing mix decisions and implementation and control.An analysis of the company situation helps them to identify available opportunities to fulfilthe demands of the customers. Besides that McDonalds needs to understand its strengths,weakness, opportunities and threats[ CITATION JMG14 \l 1033 ]. The best technique usedfor situation analysis is SWOT analysis.3 | P a g e
Figure 1: Situation Analysis for McDonald’s(Source: Lamont, 2015)Marketing StrategyA unique strategic plan is used to satisfy the customers' demand. Marketing strategy involvesSTP model. STP stands for segmentation, targeting and positioning of the product in thetarget market[ CITATION MCJ14 \l 1033 ]. Marketing Mix DecisionsThe Proper decision regarding marketing mix is important. Marketing mix includes productdevelopment, the price of the product, distribution of the products and promotionalcampaign[ CITATION FGF13 \l 1033 ].Implementation and ControlIn this stage, the plan should be made, and the products must be introduced. The marketingstrategy must be implemented and controlled later on. In this aspect, McDonald's followsthese steps for their marketing process[ CITATION DLa15 \l 1033 ].1.2 Benefits and costs of a marketing orientation for McDonald’sAn organisation develops products according to their customer needs or marketing approachor product oriented approach. Organization tries to react on customers’ want. McDonald'smakes adecision on the needs or wants of their customer rather than organisational thoughts(Jensen, 2014). Mcdonald's followsmarket-oriented approach. Marketing orientation brings4 | P a g e
benefits and costs to McDonald's. These are the benefits of marketing orientationforMcDonald's:1.Customer oriented: This stage is customer oriented, and McDonald's gives priority tothe demands of the customers and their needs.2.Identifying demand: McDonald's acts with the demands of the customer.3.Increase customer loyalty: This stage helps McDonald's to increase the value ofbuyer and customer loyalty.There are some bottlenecks of orientations regarding customers are:1.Inclusive and expensive research method: The process is very much costly.McDonald's spends lot of money in the research (Ginsberg, 2014).2.Increased benefits result in high price: The Company offers several benefits to thecustomers, so the customers have to pay high prices for their desired products.3.Low predictability: The development of product is a hard task as various consumershave different choices and the organisation feels big trouble in this type of situation.LO2: Concepts of Segmentation, Targeting, and Positioning2.1 Macro and Micro Environmental Factors Influencing Marketing Decisions ofMcDonald’sBusiness is part and parcel of the environment surrounding it. Organisational environmentrefers to those aspects of the surroundings of the business unit which determine itseffectiveness and or affect its operation. The situation, in which an organisation exists, can bedescribed regarding opportunities and threats in the macro environment apart from thestrengths and weaknesses existing in the microenvironment.The environmental factors must be analysed to have a clear picture of thebusiness[ CITATION MJS15 \l 1033 ]. These factors influence marketing decision of acompany. Macro environmental factors constitute threats and opportunities that the company may facein the macro environment. The macro environmental factors formulate larger part of everysociety and directly impact an organisation[ CITATION CDJ12 \l 1033 ]. The macroenvironmental factors include government, culture, technological growth, climate,etc.An organisation cannot control macro environment. Every organisation needs to adapt to the5 | P a g e
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