Marketing Mix Strategies for McDonald's French Fries: Report

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This report provides a comprehensive marketing mix analysis and recommendations for McDonald's French fries. It begins with an executive summary outlining key findings and recommendations, followed by an introduction that sets the context for the report. The report identifies the target market persona as individuals aged 20-34 from middle-class backgrounds. A detailed analysis of the current marketing mix (product, price, promotion, place, people, process, and physical evidence) is conducted, highlighting both strengths and weaknesses. The report then offers specific recommendations for each element of the marketing mix, such as improving product health aspects, refining pricing strategies, enhancing promotional efforts, and optimizing distribution and customer service. The analysis considers factors like industry competition, customer loyalty, and brand switching tendencies to formulate effective strategies aimed at increasing sales and customer satisfaction. The report concludes by summarizing the key findings and reiterating the importance of an integrated marketing approach for McDonald's French fries.
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Running head: MARKETING MANAGEMENT
MARKETING MANAGEMENT: MARKETING MIX RECOMMENDATIONS FOR
MCDONALD’S “FRIES”
Name of the Student:
Name of the University:
Author’s Note:
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1MARKETING MANAGEMENT
EXECUTIVE SUMMARY
This report intends to offer a marketing mix recommendation for the French fries offered by
McDonald’s. For the attainment of this end, firstly the target market persona that the corporation
needs to focus upon for this product had been suggested. The target market persona that it needs
to focus upon is individuals (both male and female) related to the age bracket of 20-34 from
middle class background. Furthermore, the present marketing mix used by the corporation for its
French fries had been analyzed, that is, the product, place, price, promotion, people, process and
the physical evidence strategies of the corporation related to the concerned product. On the basis
of the shortcomings or the limitations of these strategies feasible or adequate recommendations
have been offered for each of these strategies used by McDonald’s for its French fries.
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Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Target Market Persona...............................................................................................................4
3.0 Marketing Mix Analysis and Recommendations......................................................................6
3.1 Product...................................................................................................................................6
3.2 Price.......................................................................................................................................8
3.3 Promotion..............................................................................................................................9
3.4 Place.....................................................................................................................................11
3.5 People..................................................................................................................................11
3.6 Physical Evidence................................................................................................................12
3.7 Process.................................................................................................................................12
4.0 Conclusion...............................................................................................................................13
References......................................................................................................................................14
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1.0 Introduction
McDonald’s Corporation, established in the year 1955, is an American fast food
restaurant chain which is presently operational in more than 119 different nations of the world
(Mcdonalds.com 2020). More importantly, the concerned corporation is known for the wide
range of its product portfolio which includes French fries, burgers, sandwiches, Snack wrap,
McNuggets, Chicken McBites, beverages, desserts and others (Mcdonalds.com 2020). In this
relation, it needs to be said that the French fries offered by the corporation not only superior in
terms of taste or quality in comparison to the same product offered by its rivals like KFC, Burger
King and others but also one of the highest selling product of McDonald’s as well. The target
market for this product is the individuals of both genders related to the age bracket of 8-45 years
of age from the middle and low income backgrounds. However, as stated by Mathur (2017), the
low customer loyalty along with low brand switching costs within the fast food industry had
significantly enhanced the brand switching tendency on the part of the customers. This in turn
had adversely affected the sales volume of the French fries offered by McDonald’s and also
negatively affected the profitability of the concerned corporation as well. It is in this background
that this marketing mix recommendation report will be written.
Baker and Parkinson (2016) are of the viewpoint that marketing management had become
an integral business process of the different business corporations and affords them the
opportunity to adequately promote or advertise the various products or services offered by them.
Adding to this, Olson et al. (2018) have noted that the corporations for adequately managing
their marketing process are required to firstly select a target market persona for whom the
product or the service offered by them would be intended. Next, they need to formulate effective
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4MARKETING MANAGEMENT
product, promotion, distribution, price, process, people and physical evidence strategies on the
basis of the nature or the type of products or services that they offer while taking into account the
target market persona that they have selected for the same (Keegan 2017). However, in the
majority of the cases it is seen that the business corporations fail to formulate or design effective
strategies for all these attributes and thereby fail to attain the desired level of success (Chernev
2018). In addition to these, it had been seen that having an effective marketing strategy helps the
corporations to overcome issues like lack of customer loyalty, high brand switch tendencies on
the part of the consumers, high industry rivalry and others. The purpose of this report to
formulate a marketing mix for the French fries offered by McDonald’s so as to help it to
overcome the issues of high industry competition, lack of customer loyalty, high brand switch
tendencies on the part of the consumers and others which it is presently facing within the fast
food restaurant industry.
2.0 Target Market Persona
Deepak and Jeyakumar (2019) are of the viewpoint that the corporations in order to
ensure the success of the products or the services offered by them needs to select a suitable target
market persona or a customer base for the same. Adding to this, Haider et al. (2017) have noted
that this is important since it enables the corporations to manufacture the products or the services
as per the needs, demands and the requirements of the target market persona and also formulate
the kind of marketing strategies which will enable them to influence the buying behavior as well
as the attitude of the concerned target market persona in the best possible manner. This in turn
greatly ensures the success of the products or the services offered by the corporations and thus it
becomes important for the corporations to select suitable target market persona for the products
or the services offered by them (Kotabe 2020). More importantly, Schafer and Klammer (2016)
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in their article “Service dominant logic in practice: Applying online customer communities and
personas for the creation of service information” have noted that the best possible way in which
the corporations can ensure the success of the products or the services offered by them is through
the creation of value for their consumers or target market persona. This is usually being done by
engaging the consumers in the product development stage by helping them to offer constructive
feedbacks regarding the products which in turn helps the corporations to develop the kind of
products takes into consideration all their needs, demands and the requirements (Usui 2017). For
instance, the target market persona of the French fries offered by McDonald’s have the option to
offer constructive feedback to the concerned corporation regarding the taste, quality and other
attributes of the fries the usage of which will enable the corporation to substantially improve the
fries.
As discussed by Ellram and Murfield (2019), the corporations for the purpose of
developing an effective target market persona need to observe the behavior of the concerned
target market and also undertake an analysis of their experiences related to the products or the
services offered by them. An analysis of the above mentioned target market persona for the
French fries offered by McDonald’s on the basis of the article “How to Segment Industrial
Markets” by Shapiro and Bonoma (1984) reveals that the individuals (both male and female)
related to the age bracket of 20-34 from middle class background is the ideal target market
persona for the concerned product of McDonald’s. The selection of this particular target market
persona was done through an evaluation of the different segments along with demographic
analysis, psychographic analysis, behavioral analysis and geographical analysis. More
importantly, this particular target market persona had been selected also on the basis of the fact
that the individuals related to this particular persona generally like to consume French fries, do
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not suffer from any significant health issues which older or younger people suffer from which
deters them from consuming fries and also have the required money to regularly eat French fries.
In addition to these, an analysis of the sales data of the corporation under discussion here also
reveals the fact that this particular group of customers is the one who purchase the maximum
amount of French fries from the concerned corporation.
3.0 Marketing Mix Analysis and Recommendations
Parsons and Lepkowska-White (2018) are of the viewpoint that the marketing mix is the
amelioration of the tactics or the actions which are being used by the business corporations for
the promotion or the advertisement of the products or the services offered by them or for their
brand. Adding to this, Watrobski, Jankowski and Ziemba (2016) have noted that the corporations
taking the help of the strategic marketing plan of marketing mix needs to formulate or design
effective strategies related to the seven components of the same, namely, product, place, price,
promotion, people, process and physical evidence while taking into account the needs of their
target market persona. The marketing mix recommendations for the French fries offered by
McDonald’s related to the different components of the same are listed below-
3.1 Product
Wagner and Eggert (2016) are of the viewpoint that the different products offered by the
corporations need to satisfy the demands, needs as well as the requirements of the consumers and
thereby should integrate these aspects. Adding to this, Bagozzi et al. (2018) have noted that the
success or the failure of the different products offered by the corporations substantially depends
on the ease with which they are being able to integrate these attributes. In the case of the French
fries offered by McDonald’s it is seen that this particular food product had developed by the
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corporation in order to satisfy the need of the consumers to eat light snacks at any point of the
day they want to. The high sales volume of this particular product forms an important source of
revenue of the concerned corporation and thus it can be said that the French fries offered by it is
in the growth stage of the product lifecycle. More importantly, these fries are being made from
potato and they are being cooked in high quality oil so as to reduce the health damage that the
consumers are likely to incur on the score of the consumption of the same. Furthermore, it is
seen that the corporation actively collects feedback from its target market persona via different
customer survey, market researches and others so as to identify their needs, expectations and the
demands. In addition to these, it is seen that the majority of the rivals of McDonald’s like Burger
King, KFC and others offer French fries to the customers and this in turn had substantially
enhanced the brand switch tendencies on the part of the consumers. However, the taste, quality,
its low cost and others are some of the most important factors which distinguish the French fries
offered by McDonald’s from the ones offered by its competitors and had also helped in making
the concerned product one of the highest selling product of the corporation under discussion
here.
It is true that the French fries offered by McDonald’s is one of its highest selling products
and had also substantially enhanced the revenue earned by the corporation however there is still
room for improvement. For instance, the majority of the customers had complained that the
consumption of this product is causing various health issues and thus the corporation has the
opportunity to improve the quality of the concerned product by making it more health friendly.
This can be done by the corporation by selling low oil and no oil French fries which would be
better in taste and also health friendly for the consumers. More importantly, there are very
corporations presently which offer low oil or no oil French fries and thus it is likely that through
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the usage of this particular measure the corporation would be able to improve the quality of the
concerned product and also enhance the sales volume of the same as well.
3.2 Price
As stated by Adams, Freitas and Fontana (2019), the business corporations for the
purpose of fixing the price of the products or the services need to follow four different stages for
the attainment of the concerned end. Adding to this, Kotler et al. (2018) have noted that the
corporations are firstly required to create an objective for the attainment of which the price of the
product or service would be fixed, the next stage is the evaluation of demand followed by the re-
evaluation of the same and the last stage is the formulation of the final pricing strategy. In this
relation, it needs to be said that McDonald’s presently follows a low cost strategy for the sale of
the French fries offered by it and it is almost equal to the price charged by KFC, Burger King
and others for the sale of the same. Furthermore, this price strategy was adopted by the
corporation so as to achieve its sales objective and cater to the demands of its customers.
Moreover, this price of the concerned product was also reduced a little upon re-evaluation which
was undertaken by the corporation a few years back.
However, Brown, Foroudi and Hafeez (2019) are of the viewpoint that price is an
important determinant of the attitude or the buying behavior of the customers and it had been
seen that the contemporary customers along with price are also taking into account the factor of
quality for the purchase of products or services. Thus, it becomes important for the concerned
corporation to use the cost leadership strategy for the product under discussion here. Chonko and
Hunt (2018) are of the viewpoint that the use of the cost leadership strategy requires the business
corporations to offer the best quality products or services at affordable or lower prices in
comparison to similar services or products offered by their competitors. This in turn would
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enable the corporation to offer high quality French fries which are better in taste and also healthy
to the customers at lower or affordable prices in comparison to its competitors and thereby
influence their buying behavior in the best possible manner.
3.3 Promotion
Di Benedetto and Lindgreen (2018) are of the viewpoint that the process of promotion
helps the business corporations to adequately convey information to the target market persona
regarding the value proposition, the different attributes of the products or services offered by
them and others. Adding to this, Kouropalatis, Giudici and Acar (2019) have noted that this is
important since if the target market persona do not have adequate information regarding the
products or the services offered by the corporations then it is more likely that they would not
purchase the same. Thus, it becomes important for the corporations to take the help of adequate
promotion strategies so as to influence the buying behavior and attitude of their target market.
McDonald’s presently takes the help of digital marketing strategies, especially social media
marketing, for the promotion or the advertisement of the French fries and other products offered
by it. Furthermore, different social media platforms, traditional media channels like television,
radio, newspaper and others are being used by the corporation for promoting or advertising the
French fries offered by it. However, despite the effectiveness of the marketing or the promotion
strategies used by it had been seen that the concerned corporation had failed to significantly
enhance its target market for the French fries offered by it. Thus, it becomes important for the
corporation to take the help of adequate promotion framework for the improvement of the
promotion strategies which are being used by it. The eight step framework of Kotler et al. (2018)
is an important one that the concerned corporation can use for the promotion of the French fries
offered by it-
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Identification of the Target Market Persona
McDonald’s needs to select the right customer base or the target market persona for the
French fries which it offers. The present target market persona which it uses is too broad
and thus it needs to make it bit a more specific by focusing specially on the individuals
(both male and female) related to the age bracket of 20-34 from middle class background
Formulation of Objectives
Creating adequate amount of awareness among the target market persona regarding the
French fries offered by it
Creation of effective brand attitude objective which could show people enjoying the
French fries offered by the corporation
Enhancing the brand purchase intentions of the consumers by offering them free sample
for tasting and others
Designing Communications
The communications used for promoting the fries needs to adequately sum up the value
proposition of the same, the taste, quality and other important attributes of the fries
Usage of attractive and appealing taglines and advertisement campaigns
Selection of Channels
Usage of social media platforms
Usage of traditional media platforms
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Budget Allocation
Allocation of adequate budget for the creation of the advertisements or promotional
campaigns
Formulation of Media Mix
Selection of the media channels which are being based by the majority of the individuals
related to the target market persona of the corporation
Measurement of Results
Analysis of the sales volume of the French fries
Management of Integrated Marketing Communications
Formulation of smart plans
3.4 Place
McDonald’s presently sells the French fries directly from its different restaurants and the
customers also have the option to order the same from the online website of McDonald’s.
Furthermore, apart from the restaurants of McDonald’s different outlets of McDonalds’s have
been established in the shopping malls and others so as to facilitate the adequate distribution of
the same. The distribution strategy which is being used by the corporation can be further
improved by enhancing the number of franchised outlets of the corporation which in turn would
ensure that the individuals are being able to easily purchase the French fries offered by the
corporation.
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3.5 People
The employees of McDonald’s are being offered regular training so as to help them to
develop the social skills which in turn would enable them to offer the best quality services to the
customers. However, the low satisfaction of the customers along with the high brand switch
tendency displayed by them clearly indicates that there is a room for improvement. Thus,
McDonald’s needs to create a workplace environment wherein the workers would feel valued
and also there is a high level of engagement among the workers as well.
3.6 Physical Evidence
The different restaurants as well as the outlets of McDonald’s wherein the French fries
are being sold take the help of effective infrastructure for influencing the buying behavior of the
consumers. More importantly, the corporation also focuses on the creation of an effective
ambience or physical environment wherein the customers would feel comfortable to sit and eat.
However, at the same time it needs to be said that none of the restaurants or the outlets of
McDonald’s uses modern technological infrastructure and this in turn had substantially reduced
the satisfaction of the customers. Thus, the corporation needs to take the help of smart
technologies for improving the experience of customers within its outlets or restaurants.
3.7 Process
The customers within the different outlets or the restaurants of McDonald’s are being
treated in a cordial or friendly manner and various measures are being undertaken for the
enhancement of the service quality of the French fries offered by it. However, the frequent brand
switch tendency of the customers and also their low satisfaction level clearly indicate that the
corporation needs to make improvement in its processes. This can be done helping the
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employees to acquire social skills, cultural competency, social intelligence and other skills which
will help them to treat the customers in a better manner.
4.0 Conclusion
To conclude, marketing management forms an integral part of the business processes
used by the corporations and is an important determinant of the success attained by them.
Furthermore, for the adequate usage of the process of marketing management the corporations
are required to identify the target market persona for whom the products or services offered by
them would be intended. After this, they need to formulate adequate promotion, product, price,
place, physical evidence, people and process strategies so as to influence the attitude or the
buying behavior of their target market persona in the best possible manner. These aspects of
marketing management become apparent from the above analysis of the same in the context of
the French fries offered by McDonald’s.
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References
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Schäfer, A. and Klammer, J., 2016. Service Dominant Logic in Practice: Applying Online
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