Marketing Plan and 7P's of Marketing Mix for McDonald's

The provided assignment is a comprehensive evaluation of McDonald's marketing strategy, focusing on developing a marketing plan and analyzing the 7P's of marketing mix. It includes identifying roles and responsibilities of marketing functions and evaluating the company's approach to achieve its objectives. The assignment also explores the launch of a new product, Mc-Swirls, and considers competitors such as Burger King and Subway.

Marketing Essentials

INTRODUCTION
Marketing is an activity which is performed by the organization related with purchasing
and marketing a product or service. This involves promotion, delivering and selling goods and
services to customers. The scope of marketing is vast, goods, services, organizations, people,
places, events are even ideas are marketed (Amoo, 2017). The McDonald's is selected for the
present report, McDonald's is an American fast food company, founded in 1940 as a restaurant.
The company serve in food and beverage industry. Basically it is known for its hamburger, apart
from this company have various other eatable products in product line. This report talks about
roles and responsibilities of marketing and its process. As marketing mix is an important element
of marketing, so it is also explained in this project. Further, being an assistant to marketing
manager, a marketing plan will also be developed for the McDonald's in the project.
TASK 1
P1. marketing and its key roles and responsibilities &marketing process
It refers to the, set of organization and process for creation, communication, delivering of
what customer wants. Marketing concept is the philosophy that organisation should analyse the
needs of their customer and then make decisions to satisfy those needs, better than the
competitors. Marketing plan helps to develop current and future trends because it set the targets
on the basis on current and future demand of consumers. Current trend is decide by analysing the
current market demand and needs of customers. Future trend is decided by analysing the needs,
wants, taste, habit and preference of consumers. These trends are analysed by the research and
marketing team of the company and its helps to know the future expectations of people and
McDonald's will try to meet with these expectations. So that they can fulfil the wants and needs
of persons and satisfy them (Brassington and Pettit, 2013). McDonald's has adopt marketing
concepts to analyse the needs of customers and also want to satisfy them. Roles and
responsibilities of marketing manager are as follows-
Market information:
Information about the market is required to know about the potential customers. For
McDonald's it is essential to know which market they should select for the marketing. There are
following informations which are required like- market size, income group of people of that area,
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living standard, taste,food habits etc. It is responsibility of marketing manager to collect these
information.
Standardisation:
Standardisation is the process of implementing and developing the standards. It is based
on core values and principles of the company. For example, McDonald's set a standard that they
will not compromise with the quality of its food. It develops the believes in customers about that
company. Marketing manager is responsible to maintain the standards which are made by the
McDonald's and it helps in marketing of products of the organisation.
Product arrangement:
This is the process of producing a goods or service accessible for the publiv or business
user that needs it. McDonald's is trying to distribute its product that is food to all customers who
need it. It helps the company to capture more market share. Marketing manager also try to
maximise its distribution so that reach of McDonald's can increase in the market and it helps in
marketing planning of company.
With the help of marketing process one can evaluate market possibility, selecting target
market,developing marketing mix and managing the marketing efforts. It helps in making
marketing plan of the company (Karasar and Öztürk2014). McDonald's is using marketing
process to make a effective business plan so that they can satisfy their customers. There are four
steps which are included in marketing process such as follows-
Analysing marketing opportunities:
Analysing marketing opportunities is the first step of marketing process. After analysing
the marketing opportunities company can know the needs of customers. According to the need
and wants McDonald's can satisfy its customers. For example, if there is quality products are
demanded by the customers and organisation is able to provide it. It is that situation when
company can meet the demand of clients. It is very important in marketing planning process for
the company.
Selecting the target market:
Select the target market is important for the effective marketing process. It helps to
identify the new market place with new customers. McDonald's can select the target market on
the basis of following thing such as- market size, living standard of people, taste and food habits
of people in that area. (Larson and Draper, 2015).
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Developing the marketing mix:
After determination of marketing strategy for the targeted market, the McDonald's will
plan for the marketing mix. It is a set of controllable marketing variables that the company
blends to produce and satisfy the needs and wants of targeted market. It is mainly focuses on the
four elements that is product, price, place and promotion. These elements planned to accomplish
the organisations marketing goals and objectives by delivering value and satisfaction to
customers.
Management of marketing efforts:
Organisation makes marketing efforts to achieve its goal and objectives in target markets.
It mainly focuses on the four management functions which are- analyses, planning,
implementation and control. McDonald's can focuses on these four elements to achieve desired
organisation goals and objectives. Goal and objectives of McDonald's is to achieve customers
royalty and customer satisfaction.
P2. Roles and responsibilities of marketing for organisation goal
Marketing department has overall responsibility for growing revenue, increasing
marketing share, and contribute to the sustainable growth and profitability. It focus on the
consumers satisfaction by analysing the needs and wants of customers. Marketing manager of
McDonald's has follows the various roles and responsibilities of marketing to achieve the goal
and objectives of the company (Muralidharan and RAVAL, 2017). Roles and responsibilities of
marketing are such as follow-
Marketing with research department:
Strategy is made by the marketing department of the company to achieve the
organisational goal. For example, if McDonald's wants to enter a new sector because it want to
capture more market share. In that case it can take help of internet to reach wide geographical
market. Internet helps to know taste, food habits and standard of living of people in that specific
area because company can make online marketing research to know about all these things about
persons. Research department of the McDonald's will help in marketing research so that
organisation can know the wants of consumers and company will try to satisfy it.
Marketing with finance department
Market research is the key responsibility of the marketing department of the
company. It helps the organisation to analyse new market opportunities. For example, if
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McDonald's wants to introduce a new product related to the food. In that case company will
make market research. It helps to identify the competitors strength and weakness who is already
exist in the same industry in a particular location. Marketing department will conduct its own
research by studying industry report, market data on websites or by contacting consumers. These
steps helps to know perception of people about new food product of McDonald's. Finance
department of the organization will provide fund to the marketing department for conducting the
market research (Odia and David, 2013.).
Marketing with sales department
Marketing department of the company works with product development teams to develop
new products or improve existing ones. It analyse the sales of existing products and identify the
gap in the product range where organisation can found the new opportunities for the
organisation. For example, If McDonald's wants to develop a new product then marketing team
of company will provide the information to product development team about the customers
needs and wants. According to it product will be develop so that it can satisfy the demand of
consumers. Sales team will also support because they know the likes and dislikes of persons and
which type of product people like to buy. Sales department will provide these information to the
marketing department and this information will be passed to the product development team. It
helps in new product development and sale support because company will provide those
products which are demanded by the consumers and it will increase the sale of organisation
(Pike, 2015).
As it can be said that in McDonald's there is interrelation between different department
that is marketing with sales, finance and research department which have positive impact on the
McDonald's as it improves communication among the departments. And it can help in taking fast
decision in the organisation. The negative impact is that it can create the chaos among different
departments.
TASK 2
P3 Various elements of the marketing mix
Marketing Mix:
Marketing mix is the set of manageable selling technique that is product, price, place and
promotion, that firm blends to produce the responds it wants in target market. Basically it is set
of actions or techniques which is used by companies to promote their brand or products in the
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market. All the elements of marketing mix influence each other, as if these handles in right way
then can give huge success. But if these are handled in wrong way then business could take many
years to recover. As every big company use this, similarly McDonald's also used this and
reached at next level. These elements gives insight to the company about product positioning,
target market, price, place, people need etc. which overall helps the company to develop strategy
accordingly (Puddle, 2015). The 7 p's of marketing mix are described below:
(Source: 7 P's of Marketing Mix)
Marketing Mix of McDonald's and Burger King
Particular McDonald's Burger King
Product Product is the goods which
company offers to its
customers. This company
offers both vegetarian and non
vegetarian menu to customers.
This company product have
some attribute which care for
the customer sentiments
towards its religion and
Burger king is also providing
almost same menu to the
customers. As burger king
basically focuses on Have it
your way. The company offers
fast food and beverages items
to its customers.
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culture.
Price Price is an important element
of marketing mix as customers
are very price sensitive, all
they need is good product at
reasonable price. The
McDonald's is providing the
best price product to its
customers and that is the major
reason for success of company.
For example, one can easily
buy the hamburger of
McDonald's at 0.89 pound. So
it can be said company's prices
are affordable. Company
follows bundle pricing policy.
The menu of burger king is
seen bit costly from the
McDonald's. The company is
selling its Hamburger for .99
GBP in UK. Which is costly
from its rival McDonald's. The
company uses market oriented
pricing strategy.
Place Place is where your store/
restaurants are situated. Place
plays very important role in
success of the organisations.
The store of company should
be situated where people can
reach easily and without any
hustle. The McDonald's is
located in all prime locations
like malls, shopping complex
and near theatres also. The
company have its store in
almost every big city and one
can easily drive in.
This company is also opened
their stores in almost every big
city. And they are situated in
shopping malls, cinemas and
all other prime locations.
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Promotion Promotion refers to any type of
marketing communication
used to inform the target
audience about company's
products and services. The
various ways of advertisement
like, TV, cinema, online and
news paper used by
McDonald's to promote the
brand. Apart from this, point
of sales display,
merchandising, direct mail and
loyalty schemes used by
company. The company's
prime focus is on targeting
children in Happy Meals and
gives the children toys along
with meal. So all these
promotional strategies used by
company to grab wider market
share.
Their target customers are
children and company describe
their products on paper nut
which is placed in tray.
Company uses lucky
promotion strategies and also
place the banner around cities.
People This includes everyone who is
involved in the product or
service whether directly or
indirectly. All these people
have their own roles to play in
production, marketing,
distribution and delivery of
products and services to end
customers. The company has
standard uniform for
The outlets are handled by the
managers and ensure the
customer satisfaction. As to
motivate the employees
company gives starts to
employees as per their
performance.
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employees for equal service
treatment People are the key
assets for company, which
helps company to grow and
achieve the success.
Physical Evidence The physical evidence
appearance affects not only the
outsiders of business but
affects all the way that
business functions. The
physical evidence includes the
cleanness, speed, quality and
transparency of company.
Basically burger king have
also same kind of physical
evidence for delivering best
services to customers.
Process The McDonald's have
transparent food producing to
its consumers. As they use the
new methods of packaging and
distribution. The company
invented most efficient
cooking equipments for food
processing. Company invites
its customers to check the
ingredients used in food which
rarely any other company
does. It also allows its
customers to enter in the area
where process takes place. So
all these techniques created a
faith among the customers.
There is also transparent food
manufacturing process and
they have given training to
licensees. Company does not
allow its customers to enter in
food processing area like its
rival do.
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So these are the 7 P's of marketing mix of McDonald's and Burger King, it can be seen
that McDonald's is giving affordable price to customers whereas burger king is bit premium. So
overall McDonald's is performing better and they have loyal customers to them, which helps the
company to attain the success in market. For doing better McDonald's can launch some new
products in market. Company should give training to its licensees. The marketing manager plays
an crucial role in implementation of these 7P's in organisation. As manager control various
activities of business so if marketing manager apply these marketing mix in organisation, then
McDonald's can achieve their goal of profit maximisation with customer satisfaction.
M3 Different tactics applied by McDonald's to achieve objectives
The main aim of any company is to achieve its objectives with efficiently. As
McDonald's used the 7P's of marketing mix and applied and monitor these for achieving the
organisation goals. The 7P's includes the Product, price, place, promotion, people, physical
evidence and process. The marketing experts says, if all these elements are applied in right way
then one company can achieve the new heights. But if they are not applied in proper way then
company might have to suffer huge loss. Evaluation of these elements are very important for
sustaining in today;s dynamic world. In competitive world every company use these elements to
get their objective achieved (Rancati, Gordi and Capatina, 2016).
TASK 3
P3 Marketing Plan for McDonald's
Being an assistant to a marketing manager, McDonald's is going to launch its new
product, for that the marketing plan is developed. The company is coming up with its new
product that is Mc-swirls in mango flavour. The targeted audience for this product will be 10 –
35 year old people.
Vision: To move with velocity to drive profitable growth and serving more customers delicious
food each day around the world.
Objective of launching new product:
There should be always an objective to launch any product in the market. As the
McDonald's is a big brand in the market and company wants to use this name for earning more
revenues. The main objective of this is McDonald's could measure service times during a typical
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one hour period and record the number of times single order customers were served within a
minute of placing their order (Dibbimkin, 2013).
Marketing Mix for Mc-swirls:
The marketing mix is an important element of the marketing it helps the company to
design their marketing plan for the new product. As McDonald's also used this for its new
product Mc-swirls. These are describes as below:
Product:
Product is the thing which company is going to launch in market like for McDonald's it
is Mc-swirls.
Price:
Price is an essential component for both company and customers. As customers are more
price sensitive so price should be reasonable for the customers. The price of Mc-Swirls will be
around 2 GBP.
Place:
Place is where company wants to launch its product, as McDonald's is going to launch its
product in UK region initially.
Promotion:
Promotion is the way of creating awareness of product among people. So company will
be going to use T.V. Advertisement, newspapers and hoardings.
These above are the element of marketing mix which a company use to promote its newly
launch products.
Tactics:
Tactics is basically a marketing tool which company use to create awareness about their
products. So these kinds of tactics will also be used by the McDonald's, which are as follows:
Direct Mail:
Direct mail is a traditional approach but it still trending. As nobody reads a mail
nowadays until unless it comes with a attached coupon in it. So for McDonald's will use this
tactics to create awareness among the customers.
Handwritten Notes:
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This is an unique way of advertisement and create a relation between company and
customers. As McDonald's will use this way of technique to attract customers and to show how
much customers are mean to company.
Apart from this, company will use the social networking, print advertisement, loyalty
cards and discount coupons to attract the customers.
This marketing mix can be applied throughout the organisation in McDonald's along with
McSwirl. As this will assist McDonald's to achieve their pre set strategic goals.
SWOT analysis for McDonald's for its new product:
Strength Weakness Opportunities Threat
Brand equity of
McDonald's
worldwide
People see as
unhealthy food
International
Expansion
Competitors like
Subway and Burger
King
Affordable price and
new taste for
customers
Disgruntled
Franchisees
Can do joint venture
with supermarkets in
UK
Downturn in economy
may affect the sales
Marketing Evaluation:
Evaluation is a technique used after the marketing plan, to analyse success or failure of
the product that company launches (Smith, 2014). As evaluation helps the company to take
corrective action where company is failing to deliver good service to customers. There are ways
to evaluate the marketing effort which are as follows:
Marketing Budget:
A marketing budget is the marketing plan in terms of cost. It is an estimated cost that will
require to McDonald to perform their promotional activities. It includes advertising and public
relation, employing staff, office cost and other expenses included for marketing. This budget is
created to estimate the cost that are necessary for growing a business
Return On Investment:
It is the best way for company to know whether their effort succeed or not. Return on
Investment is the amount of profit over its investment expenditure
Expansion:
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If company's marketing reach is expanding, then the effectiveness of plan could be
probable cause.
Customer Response:
Customers are the king of market if they gives the positive response then marketing
efforts done by company got success.
STP Analysis:
The company will target the customer with age of 10-35 year old people. The company
wants to position their product within younger age people
M4 Detailed and coherent marketing plan
The plan can be considered as strategy for launching new product or for delivering new
services in the market. McDonald's is coming with its new product that is Mc-swirls in the
market and for that it is necessary to have a strong marketing plan. As to develop a successful
marketing plan first of all there should be SMART objective for the products. Apart from that
there should be target audience for the product, for McDonald's the target audience is 10- 35
years old people who would be targeted by company. The analysis of competitors is also
necessary like burger king and subway are the competitors for company. There should be proper
tactics to promote the product and then evaluation of marke
ting plan is very important. Evaluation helps company about performance of the marketing plan.
As with the help of marketing mix, McDonald's can achieve their strategic objectives. If
marketing manager effectively apply 7 P's of marketing mix in complete organisation then it
would be helpful for organisation to achieve their goals effectively and efficiently.
CONCLUSION
As per the above report, it has been concluded that marketing planning is essential to
achieve the goals and objectives of the company. McDonald's is fast food company and prepare a
marketing plan to achieve customers loyalty and satisfaction and it is the goal of the McDonald's.
In this assignment roles and responsibilities of marketing functions and seven P's of marketing
mix have been identified and evaluated by the company to achieve its objectives. Apart from this
company have also been developed a marketing plan to launch its new product Mc-Swirls.
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Online
7p's of Marketing Mix. 2014. [Online]. Available Through:
<https://www.smartinsights.com/wp-content/uploads/2014/03/The-7Ps-Marketing-Mix.png>
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