This presentation discusses the strategic marketing approaches of McDonald's, including market audit, COVID-19 impact, competitor analysis, macro and micro economic forces, customer analysis, and key marketing objectives.
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STRATEGIC MARKETING OF McDonald's
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Introduction The term strategic marketing refers to all those actions and activities which aids the management of an organization to reach towards the prospective customers with motive of converting them into loyal or regular buyers. Company value proposition, key brand messaging , data related with target customers, etc. are considered in the marketing strategy of the organization (Schiavone, F. and Simoni, M., 2019. Strategic marketing approaches for the diffusion of innovation in highlyregulatedindustrialmarkets:thevalueofmarket access.Journal of Business & Industrial Marketing).
Market Audit McDonald’s is not always towards the cutting-edge of innovation, food- trends and technology related factors as per the Paul Pomroy, CEO of UK McDonald’s. McDonald’s is identified as one of the largest organisation so to perform all work in a constant manner is not possible because high- competition among food business generate challenges for retain customer for a longer period (Thrassou, A., Vrontis, D. and Bresciani, S., 2018). The agile innovation pendulum: A strategic marketing multicultural model for family businesses. International Studies of Management & Organization, 48(1), pp.105-120).
COVID-19 Impact on business The current pandemic conditions are identified as a learning curve for an organization and more than this numerous changes within the context ofMcDonald’s business are identified. This aids management to complete their work according to the new agility of organization and it helps to comeback from different factors which create challenges for perform all work in an organized manner. Change in the work environment and conditions. Develop of new work style and method. (Brooksbank, Subhan and Miller, 2018). What differentiates successful strategic marketing among manufacturers in an emerging vs developed market?. Asia Pacific Journal of Marketing and Logistics)
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Continue A) Market Size and Trend Data McDonald’s is identified as one the well-known or world famous fast food restaurants which start their operations and functions in America and now management provide their food approximately in each country of the world (Hunt, S.D., 2017). To explore new geographical areas. To understand the size and current information.
Continue... Trend Data In the present scenario, most appropriate factors which are related with business of fast food industry is to understand all key trends which are related with the operations and functions of fast food industry. Moreover, this report highlights on all those sections that focus oncompany positions to perform their work in an organized manner(Payne, A and et. al., 2020). Some of the key trends related with business are mention as follow: To run business in an organized manner To understand the local market Improving quality services
Competitor Analysis McDonald’scorporationexpandtheirbusinessatthe international level by adoption of growth related strategy within the organisation. Competition with industry-(Strong force) Bargaining power of McDonald’s Customers/buyers-(Strong force) Bargaining power of McDonald’s suppliers-(Weak force) Threats of substitutes-(Strong force) Threats of New Entrants-(Moderate Force)
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Macro and Micro economic forces PESTLEisconsideredasoneofthemost important tool which is used for analyses any other industry and also corporate organization Usually, an analysis of external environment depend on numerous environmental factors and this is influenced enormously by organization.
Continue POLITICAL FACTOR McDonald's respond towards political laws and also it is influenced by the country over hundred a times. ECONOMIC FACTOR The economy of each country in which McDonald's perform their operations impact on the sales and profits of business and it is is because country policies impacts on all those factors that is related with monetary factors (Karg, A., McDonald, H. and Leckie, C., 2019). SOCIAL FACTOR In the present scenario, main focus of consumers is to identify and analyse that what they are putting or consuming in their bodies.
Micro environment analysis Strength Second-largest restaurant which serve inmorethan120countriesis consideredasmajorstrengthof business. Mostrecognizablebrandisanother strength of the business and this helps togenerateloyalcustomerbaseat worldwide level. Weakness High staff turnover is considered as a major weakness factors due to which skilled workforce not retain for longer period. Issue with organic and unhealthy food generate problems to manage work in an organised manner. Opportunities Demandoffastfoodisincreasing amongallovertheworldandthis defineMcDonald'shasmore opportunities to explore geographical market. Newproductdevelopmentas organisationcanintroducenew productsamongdifferentpartsof world. This aids individuals to develop all products in a productive manner. Threats Competitorsusuallyconsidered differentthreatsandincaseof McDonald's management face strong competition from Starbucks, KFC, etc. anditimpactonmarketshareof respective organisation. Legal threats generate problems and itimpactsonorganisationimage becausevarioustimesitoffer unhealthyfoodthatimpacton organisationalgoodwillorimageof business.
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Customer Analysis In the initial or previous period McDonald's is identified as a pioneer within the fast-food industry and it results that organization is widely accepted with its success. High-competition. Business concerns. Simplicity of business.
McDonald's Stakeholder Analysis Inthepresentscenario,McDonald'sandtheir stakeholder are impacted due to the Covid-19 conditions (Graakjær, N.J., 2019). One of the major problem faced by management relates with different CSR factors and they are used for address the interest of their stakeholders. Employees Customers InvestorsRow 1Row 2Row 3Row 4 0 2 4 6 8 10 12 Column 1 Column 2 Column 3
Key marketing objectives of McDonald's To perform and start organisational operations as well as functions in those locations which are easy to approach by the customers. To induce effective and appropriate policies related with business operations for increasing productivity of organisation. To make effective decisions related with business in order to attract more customers and also to enhance overall size of organisation.
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Conclusion From the basis of above report this is concluded that strategic marketing perform an important role for the organisation and it aids the management to complete their overall operations and functions in an organised manner. With analyse the market size and information related with current trend better and effective results are generated for complete the work with systematic approaches. This also refers competitors analysis perform an important role and for this Porter's five force model is used by organisation to understand the rival position and strategy. In the last, both internal and external environment is analysed for formulation of policies which aids to formulate and induce policies according to the current market conditions and internal environment.
References Schiavone, F. and Simoni, M., 2019. Strategic marketing approaches for the diffusion of innovation in highly regulated industrial markets: the value of market access.Journal of Business & Industrial Marketing. Thrassou, A., Vrontis, D. and Bresciani, S., 2018. The agile innovation pendulum: A strategic marketing multicultural model for family businesses. International Studies of Management & Organization, 48(1), pp.105-120. Brooksbank, R., Subhan, Z. and Miller, S., 2018. What differentiates successful strategic marketing among manufacturers in an emerging vs developed market?. Asia Pacific Journal of Marketing and Logistics. Hunt, S.D., 2017. Strategic marketing, sustainability, the triple bottom line, and resource-advantage (RA) theory: Securing the foundations of strategic marketing theory and research. AMS Review, 7(1), pp.52- 66.
References Singireddy, M., 2020. Mcdonald's: Global Marketing. International Journal of Health and Economic Development, 6(2), pp.16-27. Kwinta, Z.C., 2018. Analysis and evaluation of the strategic management process at McDonalds (Doctoral dissertation, Katedra Systemów Zarządzania). Graakjær, N.J., 2019. Sounding out i’m lovin’it–a multimodal discourse analysis of the sonic logo in commercials for McDonald’s 2003–2018. Critical Discourse Studies, 16(5), pp.569-582. McDonald, R.M. and Eisenhardt, K.M., 2020. Parallel play: Startups, nascent markets, and effective business-model design. Administrative Science Quarterly, 65(2), pp.483-523.
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References Karg, A., McDonald, H. and Leckie, C., 2019. Channel preferences among sport consumers: Profiling media-dominant consumers. Journal of Sport Management, 33(4), pp.303-316. Thrassou, A., Vrontis, D. and Bresciani, S., 2018. The agile innovation pendulum: A strategic marketing multicultural model for family businesses. International Studies of Management & Organization, 48(1), pp.105-120. Payne, A and et. al., 2020. Toward a comprehensive framework of value proposition development: From strategy to implementation. Industrial Marketing Management, 87, pp.244-255.