Marketing Essentials Report: McDonald's Strategies and Analysis

This report provides a comprehensive analysis of McDonald's marketing strategies. It begins with an introduction to the role and responsibilities of the marketing function within the company, including pricing, social media management, customer research, and distribution. The report then explores the role of marketing in a wider context, examining its relationships with other departments like finance, customer service, production, and IT. A key part of the report involves a comparative analysis of McDonald's and Burger King's marketing mixes. Furthermore, it details a proposed marketing plan for McDonald's, aimed at achieving the company's vision and mission. The report leverages various marketing concepts and models to provide a clear and insightful understanding of McDonald's marketing practices.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Role and responsibilities of marketing function...............................................................1
P2 Role of marketing in wider context ..................................................................................3
TASK 2............................................................................................................................................5
P3 Marketing mix of McDonald's and Burger King..............................................................5
TASK 3............................................................................................................................................8
P4 Marketing plan of McDonald's..........................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Every business organisation have different division in their departments. Marketing is
one of them, it is a department which organise market research so they can identify the demands
of buyers and analyse present and future trends in the market (Marketing Essentials, 2017). Their
work do not end here, they are also accountable for customer satisfaction as it is required for
converting a buyer into permanent customer of the company. McDonald's is among leading
player in the fast food sector of US. This organisation has around 36900 food chains serving to
million of customers in various countries. This assignment is based on McDonald's and the
responsibilities of marketing functions which are done marketing team of company. 7P's of
marketing will be discussed in this project, it will be used for comparing McDonald's with one of
their rival in UK. Marketing plan will be made in the end of file, it will help company in getting
close their vision and mission.
TASK 1
To: Marketing manager, McDonald's
From: Assistant manager marketing, McDonald's
Subject: Key roles and responsibilities of Marketing department
Date: 5.06.2018
Respected Sir,
P1 Role and responsibilities of marketing function
The concept of marketing is not present from a long time ago. Earlier companies were
only concerned about making a product because they know that people will buy it. After this,
customers started diverting towards quality so business organisation also starting focusing on this
area. The concept of quality ended when people demanded high customer satisfaction (Batt,
2013). The number of seller who could make high quality product grown many folds, so selling a
quality product does not remain a competitive advantage to many organisations. Nowadays,
buyers are not only caring about of customer satisfaction, they are also checking the whether
company is doing business by following ethical standards and at the same time doing something
for society. Below are few marketing function which are important for McDonald's:
Pricing – McDonald's is selling various kinds of food products in their stores. MNCs like
McDonald's face a crucial problem of deciding best price of an item because sometime the price
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which they set is high for customer while other time company stand in a situation where they
could sell goods at more price but because of less information about customers perception, they
lose more amount which company could easily earn. Pricing is a consider as a key marketing
function. It help organisation is setting best rate of a product so customer and company, both
earn do not feel that they are losing sometime (Desai, 2013). Marketing division of McDonald's
conduct market research and try to find that what amount would customer would agree to pay
without thinking any issue. Once they get this record then next step is to identify the price at
which company will register highest possible revenue.
Monitoring and managing social media – Marketing team take the responsibilities of
managing social media accounts of the company. They check that whether some wrong
information about company is posted on internet or not. If they found one then they remove it
and post correct information about company's offers. Promotion of products is essential for
telling people about what is the speciality of particular product and why one should buy it. An
important role of marketing function is to determine the right mode of promotion and make
strategies relating to advertising and promotion. Their are various channels where company can
promote their brand like internet, television, magazines and radio. Company cannot focus on
every platform and it is the responsibility of marketing team to chose the best one (Desselle,
Zgarrick and Alston, 2016).
Conduct customer research and Selling – Marketing wing analyse organise different
kind of surveys so they can known get all the significant information and pass it to different
departments. An organisation can only survive in highly competitive market like UK if they can
increase the number of permanent customers of the organisation. Selling is a marketing function
which is do not only assist company is selling their products, it also help them in making fine
and permanent relation with buyers so company can have good tuning with not only customer
but with all the stakeholders of the organisation.
Financing – Marketing function also involve financing. The money which this division
get for doing various activities, has to be managed by marketing managers in proper way so
company can gain better results. Sometime company need bulk order and this is the
accountability of marketing team to convince client for giving a bulk order. Another important
marketing function is to convince vendors for selling their products to the company at low price.
They are responsible for cracking big deals for the company (Hauer, 2011).
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Marketing Information System – McDonald's understand the importance of latest
technology and they know that if they will not collect and organise significant information then
company cannot make effective strategies. Managing marketing information system is a function
of marketing wing. Whenever company require some details, they seek help marketing team as it
is their responsibility to store and process detail accordingly.
Distribution – Distribution is a crucial marketing function because if company will not
put desired quantity of goods in their stores then buyers will fail to buy then and start visiting
other stores. The role of marketing function is important in timely delivery of goods in promised
period because this division have sound ground knowledge (Hsu, 2011).
Product management – Different products have different life cycle. Marketing function
is accountable for managing demand and promotion of a product in various phases of its life-
cycle. They have to check that which promotional tools and advertising strategy will work in
which phase. Sometime company have to position their product in different way so company can
earn more revenue from the same product. These types of decisions are taken by marketing team
as it is their responsibility to earn more and more many from same product for a long period of
time.
Business to customers – This term can be understood as a process where company can
sells their services or products directly to the customer. McDonald's mostly deals and delivers its
products to its consumers. With the help of this type of approach, it has been analysed that this
organisation has developed its image in a better way because direct interection mostly takes
place. This can be taken as a major tool of marketing function where company directly stays
connected with customers which aid them in understanding their requirements and can take
feedbacks as well.
Business to business – It is a process where selling of products or services to other
businesses is being done. McDonald's nowadays in some areas have adopted this type of
approach where products of McDonald's is being distributed to other business organisations like
e-commerce companies and then they sell it to customers. Under this, it has been analysed that
companies mostly does not stays connected with customers directly.
P2 Role of marketing in wider context
Marketing is a department who is not connected with a single function, this division
operates in various fields like do work related to research, make financial deal with vendors and
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others. Following is the relation of marketing team with various departments of the company and
their responsibilities in towards these divisions:
Marketing and finance – In every company, marketing team is known for carrying
various kind of data related to market. This wing of McDonald's has accountability of assisting
finance division in those areas where they cannot work solely. For example, finance division
check that whether a particular investment will provide desired return to company or not. But
they do not have idea about demand and buying capacity of people who are living in that region,
this is the time when role of marketing become important. This department support finance wing
by giving them all the significant information which is essential for making correct decision
(Kennedy and Parsons, 2014).
Customer service and marketing – Resolving issues of buyers is the main work which is
done by customer service wing. Marketing team understand the nature and genuine problems
which is faced by customer service wing so they try to make it understand to the people who are
working in customer service wing. It support this department in performing their task in best
possible way and allow company to register better customer satisfaction.
Production & procurement and marketing – Production division of McDonald's is
responsible for making or buying goods which customer buy from the store of McDonald's. This
division has very limited knowledge about trends and needs of customer. Marketing team is
accountable for telling them the approximate quantity of goods which is should produce in order
to maintain a balance between demand and supply of goods. Beside this, marketing department
play key role anticipating that what kind of product will be sold in the market in upcoming time
and they provide details about these products to the production wing so they can produce goods
accordingly (LEHTINEN and MÄKINEN, 2012).
Research & development and marketing – Research wing of all the companies are trying
their best for producing new products and services. Their main role is to produce something
which help company in earning competitive advantage. Marketing division provide right
direction and vital information to research team so they can do their work in appropriate way and
assist company in attaining their targets.
Human resource and marketing – HR team recruit employees in the organisation. They
can not do their work properly if they do not have an idea about what kind of job is done in a job
profile. Marketing division do different type of work and various skills in required for doing
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work in an effective way. It is their responsibility to tell people about what kind of talent is need
for different posts like sales executive, marketing manager etc.
Distribution and marketing – When a company is present in 20 nations and have almost
10000 stores then their distribution team has to perform their work in correct manner. Marketing
wing of McDonald's understand that distribution network is key part of company and it is their
accountability to support them by getting various permits for them and deliver them details about
which route they should use at which time at time of making a delivery in the store (Lipsman and
et .al., 2012).
IT and marketing – Information technology is a division whose importance has grown
many fold time in past few years. All the companies want to use latest technology so they can
reduce their operational cost and target more number of customers. Marketing team is
responsible for promotion of companies brands and they have the data about which platform
should be used for which type of promotion and products, they give this information to It cell so
they can put in on the internet. This company is also using latest technology in their stores like at
the billing counters. Marketing team find and convey the problems regarding soft-wares which
company has bought. They keep the record of problems which sales team face and they are
accountable for delivering this information to the IT team (Maghaireh, 2016).
Henceforth, Marketing department of McDonald's plays a vital role when it comes to
promote products and services or to enhance brand image in front of customers. On the other
hand, it has also been located that marketing subsection of McDonald's can start hitting their
targets if they will gain appropriate knowledge of all needs and requirements of customers.
Another role which is locating current trends is being also stated as an approach that aid in
developing various strategies through which competitive advantages can easily be gained at
marketplace of United Kingdom.
TASK 2
P3 Marketing mix of McDonald's and Burger King
McDonald's is strong in US and this company has potential to dethrone the number of
stores in fast food sector in US i.e. Burger king. Marketing mix covers different key elements
which can be used for finding the difference between two firms. Below is comparison between
McDonald's and Burger King by using marketing mix:
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Basis McDonald's Burger king
Product McDonald's has a clear strategy
i.e. to sell their product at an
affordable cost and also making
sure that their quality is similar
to a big brand (Mihart, 2012).
Burger king also focus on
affordability but they main
strategy is to sell more variety
of food products in their store
because they feel that if
customer will not find what
they are looking for in the
restaurant then it will hamper
the image of organisation.
Price McDonald's understand that
they are selling their food
products in a restaurant and
adopting same pricing policy
for every product is not a right
approach. This is th e reason
that they have various pricing
policies and this is only helping
them in gaining success in the
market.
There is a big reason behind
Burger king being running in
market so successfully in UK
i.e. their cost leadership pricing
strategy. This outlet is
providing their food and
beverages at effective price to
their customers and that is why
its restaurant is always filled
with customers. Through this
factor itself, they have their
place permanent in the market.
Place McDonald's want to open their
outlets in more places. Their
strategy is to target more
number of people and company
think that if they will open
more restaurants then
accessibility will increase.
McDonald's believe that if a
Burger king already have many
stores across UK and now they
are focusing to expand their
business in some other
countries as well so that they
can increase their profit
margin. Burger king
understand that location is very
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restaurant will is approachable
then customer will not prefer to
travel a long distance for just
eating good food.
important for a store and
company have to open right
types of outlet at a particular
location so they can manage
demand and supply (Mittal,
2014). They know that if they
will open a big outlet at a
location where demand and
purchasing power of customers
is low then company will face
a big loss in long run.
Promotion In Food industry, every
company like to promote their
offering so more customer visit
their stores by watching
advertisements and
McDonald's is also doing the
same. They have also designed
some of the promotional
techniques for them through
which they are gathering more
and more customers towards
their store. They are having
“Happy Meal Menu” for
children and 'kabab' option for
the adults as well.
Burger king have opposite
thinking compared to
McDonald's. They are not
making use of any kind of
promotional strategy so as to
attract more no. of customers.
But on the other hand,
McDOnald's is implementing
all these very well.
People The company manages their
employees in an effective
manner i.e. they provide good
training to their new and old
Burger king has a strict policy
of recruitment, they do not
select a person for a job profile
unless they match the skills
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employees so that they can
bring the authentic taste of
McDonald's in all the variety of
food items they will prepare
(Moini, 2012).
which are needed for job and
which are present in potential
candidate. They are also
recruiting relationship
managers so as to maintain
good relationship with their
customers.
Process McDonald's is having their
separate food manufacturing
unit which is known to the
employees as well as customers
very well. They also allow their
customers to visit the kitchen
so that they can make sure that
hygiene is being maintained
properly or not.
Burger king has a different
process for increasing their
business. They give special
attention to accessibility and
they made a procedure where
they are opening stores in
different places according to
the buying capacity of people
(Nguyen and Simkin, 2012).
Physical evidence Thousands of stores and logo
of company is a physical
evidence that company is
present. The interiors of
McDonald's are also very
fascinating and flashy which
compel a person to sit there and
have their meal.
They are having very classy
stores with the excellent
interior designing through
which customers gets attracted
and visit the stores again and
again. It is easily available in
the marketplace as well.
TASK 3
P4 Marketing plan of McDonald's
Executive summary – McDonald's wants to become no. 1 fast food chain in UK and their
mission is “to be customer's favourite place and way to eat with inspired people who delight each
other with its unmatched quality, service”. Values are important for the company and their vision
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is to follow the values in everyday operations. This organisation is planning to launch new range
of iced tea in beverage segment in their outlets because it is necessary for attaining aggressive
objectives.
Marketing objectives
 To increase 15% market share in Drinks and shakes segment in 1 year. To enhance net profit of the company by 5% in 1 year.
STP
Flavoured Ice Tea is a product whose demand is growing with rapidly. It will support
company in their market share in Drinks and shakes segment which will ultimately increase
profit of company. Below is STP for bear oil:
Segmentation – Drinks and shakes is the segment in which Flavoured ice tea will be
launched. Their was time when most of the people were only spending money on eatables as
they believed that these types of drinks are being provided at a very high rate in the market and
can be easily prepared at home but now they are getting so many options so they are opting to try
it out and says that if it is easily available in the market then why to prepare it at home.
Target – Main target of Flavoured ice tea will be young generation i.e. whose age is in
between 16-35. Young generation spend more money on Drinks and shakes compared to old
people. Company will target them so they can earn high revenue in less time period (Purvis,
2016).
Positioning – This product will be positioned as an economic Flavoured ice tea i.e. a
product which has effective quality and available at a low price in the market. McDonald's is
known for their low prices and beverages whose price is less will help them in achieving the
objective of 5% increment in net profit.
Marketing Mix McDonald's: Product: McDonald's has served many food items and beverages like Flavoured ice tea,
burgers, diet coke and many other things which are aiding it fulfilling needs of customers. Price: Prices of products of McDonald's mostly stays competitive in nature with its
rivals. Place: McDonald's is having stores in around 25 countries and are delivering its products
to targeted customers.
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