Marketing Essentials Report: Marketing Plan for MacDonald's UK

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This report provides a comprehensive analysis of marketing essentials, using McDonald's as a case study. It begins by outlining the roles and responsibilities of the marketing function within an organization, emphasizing market research, product design, promotional activities, and distribution. The report then delves into the specific context of McDonald's, examining how these functions are implemented within the company. Furthermore, it explores the marketing mix of McDonald's, including product, price, place, and promotion strategies. Finally, the report develops a strategic marketing plan for McDonald's, considering various marketing tactics to achieve business objectives and expand into new markets. The report highlights the importance of adapting marketing strategies to the market situation and environment, ultimately aiming to enhance sales and profitability.
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Marketing Essentials
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
P1 Roles and responsibility of marketing function.....................................................................3
P2 Roles and responsibility of marketing function in the context of MacDonald’s ..................5
Task 2...............................................................................................................................................7
P3 Marketing mix of MacDonald’s.............................................................................................7
Task 3.............................................................................................................................................10
P4 Marketing plan for MacDonald’s.........................................................................................10
Conclusion.....................................................................................................................................13
REFERENCES..............................................................................................................................14
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Introduction
Marketing essentials is too significant for every business organization in order to attain
long term goals and target. It helps to create awareness of goods and services in the market and
provide competitive advantageous over other firms. The report is explaining about marketing
concept in the context of a global company (Al-Ekam and et .al., 2012). The present report is
based on McDonalds which is one of the most leading fast food chain in the United Kingdom.
They provide a wide range of food products with high quality to its customer. The main purpose
of this report is to identifying function of marketing at the strategic level. It also develop a
marketing plan for their new market by using various marketing tactics.
Task 1
P1 Roles and responsibility of marketing function
Marketing play crucial role in success or failure of an organisation. It main work is to find need
of customers and than provide them want they want (Batt, 2013). This department of a company
has lots of responsibilities, some of them are as follows:
Market research: In order to win customers loyalty McDonald need to do market
research related to the economic, legal and technological changes through which the company
came to know that which factors affects the people's willingness to buy their products and
services. The company first to know and identify about the taste and preference of the targeted
customers and thereafter implement decision in order to fulfil their requirements. The company
should need to put their effort in maximising the interest of their customers by providing quality
products and services that will help them in establishing prominent position in the minds of the
customers.
Product design: The manager have ability to design products as per the requirement of
their targeted customers. Thereafter need to generate ideas to develop products in order to
maximise the level of satisfaction of their customers. The Mangers of Mc Donald need to
identify the taste and preferences of targeted customers and thereafter design product in such a
way that will bring more customers to their company. They need to find out the right
combinations of ingredients which large number of customers prefers and implement decision
accordingly to achieve success.
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Promotional activities: Promoting their products and services through conducting
advertisement on TV or online through which large number of customers attracts toward them.
They need to put the efforts to communicate with their targeted customers about their products
and services and encouraging them to keep on buying their items. They need to formulate certain
promotional strategies to different age groups of targeted customers. For example in order to
target customers they have idea to offer small toys along with the meal or implementing various
schemes for winning of prices by way of lucky draws and scratch cards when their customers
placed on various meal combos.
Product development: Production department is dependent on feedback of marketing
team because they do not have exact idea about demand of products. Some items have high
demand so company have to increase its supply in order to make proper balance between
demand and supply. Marketing division is responsible for giving for providing vital information
to manufacturing wing because they do not have any idea about recent trends that are popular in
market. They also communicate message of customers to the production department so they can
produce goods accordingly.
Distribution: Marketing team has to play a vital role in reduction of cost of business
operation. They need to find most efficient distribution system so overall cost of product can go
down and enterprise can sell their goods at correct price. It will help them in enhancement of
revenue, it will also provide them extra edge on their competitors. They also have to check
effectiveness of distribution system because if supplier do not receive goods in proper condition
than company has to suffer loss.
Events and product promotion programme: Marketing department is responsible
for promoting a product in market. For this they need to make some strategies, like organising an
event which can be online or offline.
Synchronising objectives of organisation: Every department in a company know about
mission and vision of their enterprise. They make different strategies and target in order to
achieve objectives which are set by top level management. Marketing division play crucial role
in synchronising all the tasks performed in a firm so they can reach their target in decided time.
They are responsible for optimum utilisation of available resources.
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Assistance to research and development wing : Most of the companies who are operating
in today's business environment firmly believe that they can not achieve their mission and vision
with doing research. New product or service development is necessary for growth of an
organisation. But big question that research and development department face is area where they
need to improve their product. Marketing team provide them vital information about need and
expectation of customer which provide them right direction where they need to utilise available
resources. They also give them data and other figures which give a rough idea to R&D division
about various trends which are running in market. Purchase department is also dependent on
options and views of marketing team, they assist them in understanding demand of a product so
they can purchase various types of raw material accordingly. This assistance also support cited
organisation in reduction of wastage which will ultimately make a positive impact on profit of an
enterprise.
P2 Roles and responsibility of marketing function in the context of MacDonald’s
Marketing can be defined as one of the significant activity of the business as it supports in
making promotion and advertisements of the services and products which are supplied by
McDonald in order to need and satisfy large amount of customers. Marketing activities also
helps in improving the profit and revenue generation of the company in market (Kennedy and
Parsons, 2014). Marketing also have large effect on various functions of the company which are
like customer service, finance, human resource, information technology etc., so that there will be
proper merchandise plan that can be implemented in proper way and can help in achieving
maximum amount of benefit.
Finance department of the company is responsible for making appropriate financial statements
which will help in giving proper allotment and care of funds so that there can be appropriate
modifications and based on this there will be implementation of correct decisions. Finance is the
key part of the company and is required for carrying out several other operations in an
organisation. IT department of McDonald assist in making identification of innovative and new
technologies so that there will be production of best food items. Research department of the
company assist in identifying wants and needs of customers and supports in fulfilling them by
gathering necessary data (LEHTINEN and MÄKINEN, 2012). All the departments which are
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operating in company must be aware of each and every type of marketing situation which will
help in performing work in appropriate way also in achieving success and growth. There are
several marketing functions which may involve selling, pricing, promotion, distribution,
financing as well as marketing.
In every department of the company, there should be qualitative work and for such purpose there
is a need of proper funds which will help in fulfilling desires and needs of users of service. In
order to make desired research, there is a need of appropriate resources and funds. These finance
and funds are helpful in performing marketing activities effectively and efficiently.
Marketing department of McDonald's has overall responsibility for increasing share in market,
growing revenue and give contribution in profitability and growth. Marketing activity in a
company help in making various strategies which will be in line with organisation's objective
and strategy (Lipsman and et .al., 2012). Strategy may be in regards with increasing market
share, for instance, what strategies needs to be adopted while entering in new sector etc. Market
research will also be done properly with the help of marketing activities. Research will help
company in identifying market opportunities and can also gain better understanding in regards
with needs of customer. It will also assist in understanding strengths and weakness of
competitors so that proper actions can be taken so as to protect business with existing consumers.
The department will help in carrying out research by analysing reports of industry, make
marketing of data on websites and make contacts with prospects and customers to make survey
of attitudes and needs.
Marketing department of company works with external as well as internal product development
teams in order to develop or improve new and existing products. The department make analysis
of sales of products and make identification of gaps in the range of product where there will be
opportunities for organisation. Employees who are responsible to do marketing provide with
necessary information to development teams regarding the needs and preference of customer to
help them in identifying improvements and features in incorporating new products. Later in the
process of product development, marketing department of company sets up price and make
preparation of plans so as to launch products.
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Department of marketing develops and plan communications and campaigns so as to make
promotion of service and products to prospects and customer. On the basis of available budget,
advertising campaigns may get planned, e-mail marketing programs will get developed,
publications and press release will be written like customer newsletter, product data sheet,
company brochure and leaflet (Maghaireh, 2016). They may design and write promotional
material if skills will be there within the department or there will be an appointment of
advertising agencies for producing work.
Cooperation among marketing and sales department may help in improving speed and
performance of sales for the growth of business. Department of marketing will help sales team
by giving high quality of leads through advertisements which may involve reply mechanism like
telephone number, coupon or by encouraging company's visitor on website so as to register their
details. Presentation also prepared by marketing for sales team and helps them in supplying them
with promotional material of stocks. In McDonald, marketing department is also responsible for
making events like seminars, exhibitions, sales conferences etc. Logistics of event are also
planned by them regarding booking exhibition, event etc. Promotion of external event is also
done to prospects and customers so as to make sure successful attendance.
Task 2
P3 Marketing mix of MacDonald’s
It is essential for a business organization is to develop effective and appropriate marketing
strategies which helps to provide competitive advantage in the market. There are various
approaches can be used by a corporation in an appropriate way (Mihart, 2012.). Developing
marketing strategies is one of the most significant approach where a marketing manager make
their decision and enhanced sales and profitability which is a common goal for every business
entity. Marketing mix is a combination of product, price, place and promotional aspects in the
business. McDonalds required that to design these tactics according to the market situation and
environment. Each company having its own business environment and factors which needs to be
studies by them.
Product: This is one of the most significant element related with the marketing mix. A company
required that to produce such products which having unique characteristic in terms of quality,
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design, features, services etc. Therefore, marketers try to develop such products and services
which can provide competitive advantage in the market. It also helps to build more ideal image
in the market and enhanced customer loyalty which is common goals for each and every business
unit. In the context of McDonalds which is one largest food chain across the world. There
provide a wide range of fast food top their customers. The most significant thing is the quality of
their offering products. They having unique combination of food items for their target at the
affordable price. Apart from that, marketing manager McDonalds required that to conduct
customer survey and feedback to know about their needs and demand. So that they can make its
food items according to customer choices. For example,
Price: This is another element of marketing mix which is related with the pricing strategy.
Customer is more sensitive regarding product price which must be focused on these issue. There
are various pricing tactics can use by cited firm in order to meet its long term goals and targets in
an effective manner (Mittal, 2014). For example, marketing manager of McDonalds can use
discount competitive pricing where they offer their food items at lower price as compare to its
rival companies. The main aim of such strategy is to increase market share and profitability.
Apart from that they also use premium pricing for their target market which helps to increase its
revenue in an effective manner.
Place: It is related with the distribution channel where a business unit provide goods and
services. It plays a significant role in the success for every organization success and profitability.
A business entity is try to set their distribution centre at strategic location where people
footprints are too large. McDonalds is more aware about its strategic location and they try to
established their chain at specific location such as college and university campuses, shopping
mall, street store which helps to increase its sales in an appropriate manner. apart from that they
also required that to focused on online outlets which helps to assess more market. McDonalds is
having more than 35000 approx., location at the global, level which is quite large as compare to
other companies.
Promotion: There are various communication strategies which help a firm to promote its
products and services in an effective manner. The main objectives of promotional mix are to
create awareness of its goods in the market by using different methods and approaches.
McDonalds can be used following promotional tools which are:
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Advertising: It is one of the key element in promotion where a business unit is try to use different
approaches which promote their products in the market. McDonalds is spending billions of
dollars on advertising which provide competitive supremacy as compare to its competitors
(Moini, 2012). It includes electronic media such as TV, radio, print media newspaper and
magazines and so on. Apart from that today, the role of social media such as Facebook, You
Tube, Instagram etc. which helps to promote food items in a cost effective manner.
Sales promotion: It is related with the short term incentive provides to its customer in terms of
discount, quality deals premium gifts etc. For example, McDonalds can offer discount at combo
food items to its customers.
Public relation: It is essential for a business corporation is to maintain sound relation with its
stakeholders such as employees, customers, investors, suppliers, government and society. It is
the responsibility of marketing department of McDonalds is to provide relevant information over
a period of time. Apart from that they need to conduct annual meeting where invites their
shareholders and make their decision. There is various financial information such as balance
sheet and income statement of the company must be providing to public at large. It helps to
attract potential investor who will invest their money in their business for its expected return.
Apart from that, marketing manager also needs to sponsor various international events such as
Football World cup, Olympics where they increase its brand value in an appropriate manner and
develop a global corporate image which is too significant at international level.
People: HR are the valuable asset for a company which helps to contribute in achieving
organizational goals and targets. In this context, McDonalds is having skilled and talented
workforce which perform their task in an effective manner (Nguyen and Simkin, 2012).
Process: This is related with the overall, system of a company which start from acquiring raw
material from its suppliers and transform in to product and send to end consumers. McDonalds is
having its own system which integrated with each outlets and support the supply chain of the
company.
Physical evidence: McDonalds is more focused on its store cleanness and hygiene interiors
which helps to create an ideal image in the public.
Therefore, McDonalds required that to conduct market research and make its marketing mix
accordingly. It helps to gain competitive superiority in the market which helps to increase its
market share and profitability at the next level (Ogunmokun and Tang, 2012). For designing
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these strategies, they must communicate with various functional department such as finance,
sales, product and make recommendation for the improvement in the near future.
Marketing mix of Burger King
Marketing mix Description
Product There are various products offered by the cited firm such as
burger, coffee, fresh juice, chicken tender and so on.
Price This is another key part of marketing mix which is related with
the pricing strategy of the company. Burger King usually use
economic price approach in order to increase sales and gain
competitive edge.
Place There are more than 15000 outlets across the world which help
to sell its product and services in an effective manner.
Promotion It is related with the various promotional activities uses by the
cited enterprise. It involves social media, print media and
digital media in order to promote their products and services in
an effective manner.
Task 3
P4 Marketing plan for MacDonald’s
It is essential for a business unit to design their marketing plan in an effective manner. The main
aim of such plan is to develop road map for their products and services. A market plan is
supported by strategy, tactics, and budget for a specific market. McDonalds required that to
design its plan and communicate with different department such as finance, sales, production,
customer service. It increases the success are of market plan and support in to effective
implementation. There are various strategies involves in this plan which are given below:
Goal setting: This is the first stage of a marketing plan which start from creating mission and
corporate objectives. Marketing manager is setting the company mission and determine
uniqueness in the corporation (Papasolomou and Melanthiou, 2012). It provides a long term
direction to business unit where they can use SMART approaches in order to develop their
marketing plan. According to the given case, McDonalds mission statement is “Good Food,
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Good People and Good Neighbour” where they provide a wide variety with quality foods, skilled
workforce and sustainable development of their business.
Analysing current situation: Business environment is to complex and competitive which required
a careful analysis in order to develop marketing plan. There are two major environments internal
and external having large influenced on current and future performance of business. External
environment cannot be controllable but with the help of effective examination they can minimise
potential risk on their business. on the other hand, micro factor can be controllable within the
organization. McDonalds requires to use PESTEL and SWOT and develop its proposed market
plan effectively.
Marketing Audit: There are following aspects in marketing audit which are given below:
Political factor: It is related with the government stability and business policy within a country. It
having a great impact on future market plan of McDonalds and its implementation. As per the
given case, UK is politically stable as compare to other nation which helps in maintain consistent
economic policy (Purvis, 2016).
Economic factor: There are various economic factor such as GDP growth rate, per capita income,
interest rate, inflation and employment situation. UK economy is approx. $2.5 trillion which one
of the leading in EU. Apart from that, other elements also quite good which create a large market
opportunity for McDonalds to increase its business.
Social factor: It involves culture, population size, population growth, taste, preferences
disposable income and so on. For example, they disposable income of UK is approx. $30000
which is quite good as compare to other countries. It helps to increase demand of goods and
services.
Technological factor: Innovation and technology plays a significant role in the success for every
company. It increases profitability and reduced operational cost which is the major target for a
business. McDonalds can use social media tools to promote its product and services in a cost
effective manner.
Legal factor: There are various laws and legislation relating to business and its influences on
marketing plan. Therefore, it is responsibility of marketing manager is to focused these act at the
time of designing strategies. For example, increase in labour wage having an adverse impact on
company revenue.
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Environmental factor: Today customer is more aware towards climate and environmental issue.
They prefer those products which are less harmful for the nature. McDonalds can be used various
approaches such as use of eco-friendly packaging in order to produce goods and services
(Raj,Walters and Rashid, 2012). With the help of such business practices a company can attain
its long term goals in an effective manner.
SWOT analyses:
Strength It is one of the most famous brand name in the fast food industry.
They provide a wide variety of foods such as Burgers, Cold drink,
Coffee, Tea, Wraps, etc.
The more focused on food quality and use of hygienic food processing
which is too essential in this sector.
They spend billions of dollars on promotional activities which increase
competitive position in the market.
They having more than 35000 outlets across the global which provide
competitive advantage in the market (Tonkin, Swhitmore and Cutroni,
2011).
Weakness Customer are more aware towards healthy food which reducing its
market share and profit.
There are various laws and legislation which create negative image of
the company in the public.
Opportunities There is various emerging market such as India and China where they
can expand their business.
They also need to introduced new product range for health aware people.
Threats Large number of companies in food chain increase competition level.
Increase health awareness in the public regarding fast food.
There is various global factor like recession, fluctuation in economy
large impact on its business.
There are large number of regulatory bodies having influences its
growth and future operations.
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Developing marketing strategy: This is next stage of marketing plan where a business
organisation develops marketing strategies which support its proposed plan. McDonalds can use
various marketing tactics in order to attain its targeted objectives. For example, social media
tools are one of the most appropriate method. Facebook, You Tube, Twitter, Instagram are best
tool to create awareness in an effective manner (Wu, Kirkole and Huang, 2016).
Allocation of marketing resources and monitoring: In this stage higher authorities required that
to arrange various resources for their marketing plan. It involves:
Financial resources: McDonalds can arrange its capital from other various sources like internal
and external according to its requirement.
Human resources: HR department is responsible to recruit its potential staff through various
sources.
Marketing Budget: In this stage marketing department is required to make a statement which
involves various estimated cost of its proposed plan. It involves market research cost,
advertisement cost, promotional activities expenditure etc. the main aim of marinating budget is
to control overall expenditure of its plan.
Marketing activities Jan 2017 (£) March 2017 (£)
Marketing Research 2000 1800
Print Media 2500 2200
Digital media 1500 1200
Implementation: It is final stage of marketing plan where a company required that to implement
it. This is most critical step which needs careful analyses and monitoring so they they can
identify loopholes and rectify in in an effective manner.
Conclusion
As per the above mentioned report it has been concluded that marketing concepts and its role in a
business organisation. The report discussed about different roles and responsibilities of
marketing functions in the context of McDonalds. The use of marketing mix such as product,
price, place, promotion, people, process and physical evidence. This report also explained about
marketing plan in order to attaining long term goals of the company. It starts McDonalds from
setting mission and corporate objectives, conducting environmental and organisational goals,
designing strategies and implementation
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REFERENCES
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Marketing Essentials. 2017. [Online]. Available through
<https://www.entrepreneur.com/article/286545>. [Assessed on 19th July 2017].
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