An Analysis of Hospitality Marketing Strategies: McDonald's Case Study

This report provides a comprehensive analysis of hospitality marketing essentials, with a specific focus on McDonald's marketing strategies. It begins with an overview of the organization, exploring the role and responsibilities of the marketing function, and how it interrelates with other functional units. The report then delves into the significance of these interrelationships, examining how marketing interacts with human resource management, research and development, finance, and production departments. A key element of the report is a comparison of how hospitality organizations, specifically McDonald's and Hilton, utilize the elements of the marketing mix (7Ps) to achieve their overall business objectives, including product, price, place, promotion, physical evidence, people, and process. Finally, the report concludes with an examination of McDonald's marketing plan, including its executive summary, mission, and the importance of planning, segmentation, targeting, and positioning (STP) in achieving business goals.

Hospitality marketing
essentials

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Overview of the organization......................................................................................................1
Role and responsibilities of marketing function..........................................................................1
roles and responsibilities of marketing in the context of the marketing environment.................2
significance of interrelationships between marketing and other functional units.......................2
analyse the key elements of the marketing function and how they interrelate with other
functional units............................................................................................................................3
Compare ways in which hospitality organisations use elements of the marketing mix (7Ps) to
achieve overall business objectives.............................................................................................3
Marketing plan.............................................................................................................................6
CONCLUSION:..............................................................................................................................8
REFERENCES:...............................................................................................................................9

INTRODUCTION
Hospitality marketing essentials refers to the strategies and process of the business of the
hospitality which are very important to attract the customer and maintain trust of the brand. It
includes industry of the hospitality like resorts, hotels, parks and restaurants use their marketing
process and the strategies to promote their products and services. Objectives of the McDonald
achieved only by effective planing of the planning in the business. There is need of apply the
various marketing mix strategy in the business of the McDonald for increasing the productivity
and profits of the business.
Overview of the organization
McDonald plays various roles and responsibilities of marketing functions to achieve the success
and growth of the business. The good marketing strategy and techniques leads to the successful
and effective business. Marketing functions helps the McDonald for building their brand name
by maintaining the good image of products and services in the heart of the customers. It also
helps to maintain effective and efficient communication with internal and external units of the
hotels. McDonald applies various roles and responsibilities in the techniques and strategies of the
marketing to promote their product and services. With the increase in competition of the
hospitality industry McDonald have to apply effective strategy of the marketing.
Role and responsibilities of marketing function
Effective strategy of the marketing helps to increase the income of the McDonald. McDonald
focuses to provide tasty and hygienic food to the customers so that they visit their restaurants
again and again. Marketing planning is very necessary for the successful business of the
company. Perfect and effective planning of the production and promotion process leads to the
success and growth. McDonald made their planning of the marketing to bring efficiency in the
level of the production for achieving the business objectives. Product development is another
functions of the marketing which aims to develop the products and services according to the
needs and wants of the customer (Al-Janabi and Mhaibes, 2019). It focuses to fulfil the needs
and demands of the customer with their products. McDonald makes different strategies for the
development of products and services to provide better food to the people. Customer is the key
points for every hospitality industry and their needs and wants must be fulfilled by the company
for the success and growth. In the McDonald the departments of the marketing aims to maintain
effective structures and operations of the businesses for the profits of the company.
1

roles and responsibilities of marketing in the context of the marketing environment.
It also includes to check the process of marketing in the McDonald which includes proper
planning, analysis of the work and marketing mix. Identify the needs and wants of the customer
is very important for success and growth of every business. So McDonald creates various
internal and external channels for acquiring the information from the department of sales and
support of the customer. Measuring the position of the company in the competitive market is
very important to identify the mistakes of the company and taking actions to correct them.
Marketing department of the McDonald make sure about the awareness of their brand so that the
customers will enjoy their products and services repetitively (Caliskan, 2019). Branding is the
most important role which is played by the McDonald because it develops the image of their
products, services and the company.
significance of interrelationships between marketing and other functional units
Functions of the marketing are interrelate and the organizational units are interrelated
with each other because both plays important roles and responsibilities for the success and
growth of the business.
Marketing with human resource management: for better marketing of the business human
resources is very important because they will recruit, select and train the candidate for effective
sales of the organization. The department of the human resource helps to organize the interview
as per the needs to increase the sales of the business. Skilled and intelligent candidates of
marketing knowledge could be selected by the human resource management which will helps in
success and growth of the McDonald (Cheng and Chen, 2017). McDonald wants the employees
which helps to increase the sales and it is possible only with the help of human resource
departments.
Marketing with research and development: research and development helps to improve the
strategies of the marketing with new ideas and innovations of the new food items. Research by
the marketing department helps to identity the needs and wants of the customer. Taste and
preference of the customer for the food items are changes rapidly so the McDonald organize
research process to fulfil the needs and wants of the customer from their products and services.
2

analyse the key elements of the marketing function and how they interrelate with other functional
units.
Marketing with finance: the department of the marketing needs to work according to the
department of finance to check that the company will have the adequate budget to fulfil the
requirement of research, promotion and distribution of products and services. The marketing
management of the McDonald woks related as per the department of finance and set their budget
of marketing according to the finance department. Finance department ensure that whole
business will run according to the budget of the company. So the marketing strategy is made in
accordance with the finance department of the McDonald.
Marketing with production department: the marketing department will make the strategy as
per the production department because the marketers will give brief about the products which is
set by the production department. In the McDonald the department of production make the food
items with proper care of health of the consumers. In the competitive market marketers wants to
get products and services as to increase the sales of the business. Production departments made
the products as per the taste and preference of the customer and marketing department will
expose the products to the customers.
Compare ways in which hospitality organisations use elements of the marketing mix (7Ps) to
achieve overall business objectives
7Ps Hilton MacDonald
3

product The hotel Hilton divides their
products into three different
parts such as core, facilitating
and supporting products. Core
products are rooms of the
hotels in which customers stay
for some period. Facilitating
products are those which the
hotel provides services to their
customers like bars,
restaurants and online
reservation facilities.
Supporting products involves
24/7 services, free newspaper
and magazines, travellers of
business.
Macdonald have variety of its
products like hamburgers,
cheeseburger, big mac,
chicken sandwiches, egg white
delight mac muffin, hot cakes
and hash browns, vanilla
shakes and vanilla cone, baked
apple pie and many more.
Price It divides the pricing policy
into four parts such as
economy, penetration,
skimming and premium.
Economy pricing given to the
low budget customer and
provides basic feature.
Penetration pricing includes
greater quality products with
low prices. Skimming pricing
involves the higher price of
products than the competition.
Premium involves level of
pricing is high with high
It involves variety of
techniques of pricing for the
sale of their products such as
value pricing, going rate, cost
plus pricing, loss-leader.
Macdonald gives the prices
which is competitive for its
foods and drinks.
4

quality products and services.
The Hilton uses the price
skimming policy and
strategies.
Place Hilton's hotels decides their
place near beaches, peace,
calmness and near airports and
near the historical place for the
view.
Places of the MacDonald is
near the airports, malls,
colleges and in the public areas
to provide convenience to their
customer.
Promotion Hotel Hilton uses various
activities of the promotion to
stand in the business of the
hotel industry. FMCG
products, internet, reports of
the media, from the projects of
the social services, customers ,
directories of the hotel are
some examples of the
promotion in the hotel Hilton
(Dioko, 2016).
Advertisement is the most
important in the activities of
the promotion in the
Macdonald through television,
internet, newspaper and
magazine and for the
communication with their
customer to other media.
Physical evidence Physical evidence involve the
lobby of the hotel, nice music,
restaurants and the services of
before and after to the
customer.
It refers to the visitors of the
physical environment and
experience of the customers
5

People It involves various people like
bell boy, laundry men,
receptionist, chef, cleaner and
waiter who provides the
services to the customers.
In this 70% of the total men
women of the UK are working
in the MacDonald. People
refer to both employees and
customers.
Process The process involves the
activities and the functions
performed by which the
services are offered are service
deliver system like front stage
and back stage.
It involves various activities to
offer the products and services
to their customer. Preparation
of food is the main and
important activities in the
process (Florence, and et.al.,
2015).
From the above presentation it can be concluded that the marketing strategies of the
Macdonald is better than the hotel Hilton because it gives variety of fast food products as
comparison to the Hilton hotel. I can measure that the policy of the price in both the company
MacDonald have better policy because it involves value pricing, loss leadership and going rate. I
could say that MacDonald is the best because it cares of the convenience of their customers and
set their locations in the public places
Marketing plan
Executive summary: It refers to the goals and objectives of the McDonald. It involves how the
effective planning of marketing helps to achieve the success of the company. McDonald focuses
to gives better food products and better services to their customer so that they will maintain the
good image of their brand in the eyes of customers. The main aim of the McDonald is to expand
their business across the world by giving effective products and services to their customers.
Identification of the strength and weakness of the company products and services will helps to
improve their process of the planning (Guaracino and Salvato, 2017). Effective planning of the
functions of the marketing only by monitoring and controlling the activities of the employees of
the company. Planning of marketing includes the reasonable and proper budgeting set for the
product of the McDonald It also involves the proper planning of the STP process in the
McDonald.
6

Mission: the main aim of the McDonald is to build the image of the brand in the heart of the
customer (Lee, Reid, and Kim, 2016). Customers are the key feature for the success and growth
of the business of the McDonald. McDonald expand their business across the world by increase
in their productivity.
Vision: McDonald provides the best burgers to their customer than any other company so that
they will reach to the success of the company. Proper planning and execution of the planning is
necessary to make effective vision of the company success.
Objectives: the main objectives of the McDonald are:
 To increase the sale of the company by 30%
 To increase the level of customer satisfaction
 To provide fresh and hygienic products to the customer.
SWOT analysis:
It involves the proper and efficient planning to understand the strength, weakness,
opportunity and threats of the company. Services which is given to the customer by the
McDonald affects the customers positively and negatively.
Strength: The strength of the McDonald of is that it provide fresh and delicious food to their
customer and taking care of their needs and demands with the products. It could expand their
business in any of the country of the world and helps to increase their objective of the business.
French fries, happy meal, big mac are very successful items of the Macdonald which is very
liked by the customer. It is the strength of the business of the Macdonald. Macdonald covers the
42% of the total business of fast food hamburger in the whole US. Position of the balance sheet
is also strength for the MacDonald (Mahadevan, 2018). It provides the best burgers over the
world.
Weakness: McDonald have lots of weakness such as decrease in market share, Development of
their products are very weak, taste and quality of the products, slow growth of revenue and
income of the customer. Macdonald is try solve their weakness because it reduces the
opportunity cost of the company and decrease in the profits of the business. Proper and efficient
planning is required for the development of the products and services which is very weak.
Opportunities: McDonald are expanding their business internationally, they serve their food
products to only 1% of the total population of the world. By innovations and new ideas they
7

provide healthy foods to the customers (Melissen and Sauer, 2018). Proper planning helps to
reduce the impact on the environment by continues focus on the social responsibilities.
Threats: threats like ups and down in the economy of the country may affect the sales of the
retailer, rapid change in demographies, provide hygienic foods because customers are more
conscious about health, the rapid increase in the competition affects the position of the company
marketing planning helps to minimize the threats of the McDonald.
STP
Planning involves the segmentation, targeting and positioning of the products so that the
customer will attract to the products and services and increase the productivity of the company:
Segmentation: in this process of planning it involves dividing the populations into different
groups such as geographical, demographical, behavioural and psycho graphic characteristics.
Geographic involves division of the as per their region and density. Age, gender, occupation and
income are comes under the demographical criteria. Loyalty and trust of the people is comes
under behavioural and people are also divides as per their social class and lifestyles. Macdonald
uses the demographical process of the segmentation.
Targeting: targeting in the McDonald refers to the selection of the specific groups for targeting
the products of the company. Right segments should be targeted by McDonald by understanding
identifying the information about the size of the segments and profits of the company.
Undifferentiated targeting is used by the MacDonald.
Positioning: it is the process in which selection of the strategies of the marketing mix which is
necessary for the target segments of the customers. Building the image of the products and
services in the mind of the customer which helps them to understand the quality of products
(Teoh, Wang and Kwek, 2019). McDonald is a family restaurants and it focuses on all the kids,
teenager and adults made the products as per their needs and wants. Price positioning is used by
the macdonalds.
Monitoring and Controlling
It involves the process and planning strategies to monitor and control the activities of the
employees so that they will provide better and effective services to their customers. Proper
budgeting of their products according to customers class and status. Budgeting in the MacDonald
is according to the all the category of the people which will increase the satisfaction of the
customer. It involves the key performance indicators (KPI) which helps to measure the
8

performance of the employees. Time, efforts and acceptance of the employees which is required
in the KPI for the success and growth. If the measurement of the KPI is used to achieve the
objective and profits of the McDonald (Todorova, 2018). For measuring the KPI satisfaction of
the customer, satisfaction of the employees, cost of the sale of the total goods and profits are
some examples.
Budgeting:
The marketing plan estimated the total budgeting is of 500 pounds in the Macdonald. The
total budgeting of the planning of marketing in the Macdonald gives the estimated prices to the
Macdonald.
CONCLUSION:
From the above study it can be concluded that the hospitality marketing essentials
involves the process and strategies for the success and growth of the business. Roles and
responsibilities of the company focuses to increase the name of the brand in the minds of the
customers. Perfect and effective marking planning is needed for the development and
improvement of the policy of the company.
REFERENCES:
Books and Journals:
Al-Janabi, A.S.H. and Mhaibes, H.A., 2019. Employing marketing information systems for the
success of small and medium enterprises: A field study of some Tourism and Travel
companies in Baghdad.
Caliskan, A., 2019. Applying the Right Relationship Marketing Strategy through Big Five
Personality Traits. Journal of Relationship Marketing, pp.1-20.
9

Cheng, J.C. and Chen, C.Y., 2017. Job resourcefulness, work engagement and prosocial service
behaviors in the hospitality industry. International Journal of Contemporary Hospitality
Management. 29(10). pp.2668-2687.
Dioko, L.D.A., 2016. Progress and trends in destination branding and marketing–a brief and
broad review. International Journal of Culture, Tourism and Hospitality
Research. 10(1). pp.5-13.
Florence, K., and et.al., 2015. The Effects of the Marketing Mix on Choice of Tourist
Accommodation by Domestic Tourists in Kenya.
Guaracino, J. and Salvato, E., 2017. Handbook of LGBT tourism and hospitality: a guide for
business practice. Columbia University Press.
Kennedy, D., 2019. 5 Easy Ways To Reduce Turnover At The Front Desk.
Lee, H.Y., Reid, E. and Kim, W.G., 2016. Antecedents and the Moderating Effect of Value
Consciousness on Customer Complaints in the Social Commerce Industry. Culinary
science and hospitality research. 22(6). pp.98-104.
Mahadevan, R., 2018. Examination of motivations and attitudes of peer-to-peer users in the
accommodation sharing economy. Journal of Hospitality Marketing &
Management. 27(6). pp.679-692.
Melissen, F. and Sauer, L., 2018. Improving sustainability in the hospitality industry. Routledge.
Teoh, M.W., Wang, Y. and Kwek, A., 2019. Coping with emotional labor in high stress
hospitality work environments. Journal of Hospitality Marketing & Management, pp.1-
22.
Todorova, L., 2018. The development of cultural tourism in Bulgaria-a springboard for
increasing the attractiveness of the destination. Известия на Съюза на учените–
Варна. Серия „Икономически науки”. 7(1). pp.121-127.
10