Marketing Strategies: McDonald's STP Analysis & Next Plc 4Ps Analysis

This report analyzes McDonald's STP (Segmentation, Targeting, and Positioning) strategy, focusing on demographic, geographic, psychographic, and behavioral segmentation. It examines Next Plc's marketing mix using the 4Ps (Product, Price, Place, Promotion), detailing product offerings, pricing strategies, distribution channels, and promotional activities. The report assesses relationship marketing strategies, emphasizing current tactics and providing recommendations for Next Plc to enhance its overall marketing approach. This includes leveraging market insights, consumer behavior data, and effective advertising to resonate with target markets.

Marketing
Management

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Analyse the STP analysis of McDonalds.....................................................................................1
Examine the marketing mix focusing on the 4Ps of Next Plc.....................................................4
Assess the relationship marketing strategy with an emphasis on their current tactics................5
Provide recommendations on how Next Plc can develop its marketing strategy........................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing management is the organisational discipline that focuses on the practical
application of marketing orientation, tools and systems within the firm and business enterprise
and on the management of a company’s marketing resources and activities. Along with this
marketing management is the determination, planning, implementation and control programmes
designed to bring about expected exchanges with target markets for the aim of accomplishing
organisational goals. By including efficient marketing plans and strategies, the administration
can run its business in more amended form (Deepak and Jeyakumar, 2019). For the
accomplishment of this assessment McDonald is the establishment which is considered. It is an
American fast food company that was established in 1940 and is headquartered in California,
US. The written document will discuss about information about STP analysis and marketing mix
strategy. Moreover, it will describe about the relationship marketing strategy and
recommendations in reference to marketing strategies.
MAIN BODY
Analyse the STP analysis of McDonalds
STP STRATEGY
This technique and framework is one of the most famous strategic marketing tools that
used and implemented by the businesses for adequate purposes. It is an exceptional
representation of the ordinary alteration in focus from a commodity centric technique to a
consumer centred tool which assists business firm to develop identification that they are
infuriating to attain and how to place themselves for development and enlargement. STP refers
as segmentation, targeting and positioning. It is a three phase process which permits for the
development of a particular and actionable marketing plan. The key objective behind this activity
is to classify company’s consumers, target each segment team as per proclivity and demands as
well as make circumstance base change in enterprise’s brand and advertising strategies to remain
their desires and necessities (Hollensen, 2019). This technique is efficient and important as it
segments broader markets in to small categories, making it easy to expand particular tools for
reaching and involving specific target customers instead of having to utilisation a basic
marketing plan that would not be as interesting or as adequate.
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In McDonald, the management of the venture use this strategy in context of development
and the description of it is as under:
Market segmentation- It is an activity of classifying and categorising a marketplace into
different units of buyers that have diverse demands and requirements, behaviours and attributes
and that might demand separate goods and endorsement programmes and sessions, McDonald
largely make concentration on following market sections:
Demographic- It includes of segmentation of the market place in to units on the basis of
different alternatives like age, sex, earning, race, occupation, nationality and many more (Baden-
Fuller and Teece, 2019). A one might anticipate, demographic segmentation changeable is
among the most famous bases for classifying consumer teams and units. Also for sensible
reasons, there is often much more information accessible to assist with the demographic
segmentation activity. McDonalds provider their apprehension in following demographic
segmentation:
Age- It is one of the substitutes of demographic categorization is age. In context of
respective firm, to provide its commodities and offer advantages of its services, the firm
categorised its consumers in term of children, young adults and adults. For children, McDonald
provides a lot of goodies, toys, happy meals and many more to attract this younger segment
consumer and target audiences. Young people are the major source of income for any business,
let alone McDonalds. This market section may be having non-refundable income that are lower
than the standard, their useable patterns are far much more than old another market segments.
The adults are the third segment in context of target this section. McDonald pulled its, menu and
made its offering less in calories and healthy.
Income- In McDonalds, earning and profit is an essential aspect for organisation. This
factor determined that group is to be embattled (Al-Surmi, Cao and Duan, 2020). In the
inadequate improvement of particular venture, they centred and concentrated on the class but
slowly are starting financial system meals which get attention the lesser to central income group.
Geographic- The marketplace is classified as per the geographic criterion like nation, states,
regions, cities and many more. McDonalds focus on following segmentation. These are as below:
City- The management of specific venture is focused on making development in nation.
For example, in Asian marketplace, the establishment centre on popular and famous nations and
capital of state where they can attract a range of individual. They concentrate on visitors and
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tourists places, crowdy and corporate areas. In addition to this, they focus on tourist spot.
Commercial area and many more.
Psychographic- It is classifying market in to several teams supported on social class and lifestyle
of individual (Lindgreen and et. al., 2020). McDonalds segments market on the base of
psychographic options like life style and personality.
Behavioural- In this kind of classification, customers are classified in to teams as per to their
information of attributes regarding, utilisation of or answer to a good. It is efficiently based on
the behaviour of the target audiences.
Benefits- Diverse products and goods are embattled regarding the advantages sought
through consumers. For this McDonalds only concentrate and centre on social class.
Loyalty status-There is two forms to develop business. To obtain new consumer and
second is to keep its surviving customers. The more faithful their consumer is to the enterprise.
The large customer base and number of target audiences will develop that is one more type of
behaviour those marketers’ goals. In context of McDonald, they have some benefit as they are
well acknowledged as global fast food chain organisation.
Marketing targeting- After segmentation phase, the organisation needs analysing on the
targeting strategy. Establishments require selecting the market sections that they need to focus on
and put in their upcoming time business strategy. In McDonald’s, the target market considers
both vegetarian and non-vegetarian consumer categories. The specific firm has commodities in
its menu that cater to adults and young people. From a long time, the business venture desired
itself to be known as a family restaurant and has be running campaigns the same or equally.
Market positioning- It is the last and final stage of this framework and model and on
confirming the market sections and categories that the establishment wants to target, the
marketer’s next phase is to propose a marketing session and program that will resonate with the
target market or market places (Leonidou and Hultman, 2019). In reference to positioning its
commodities and services effectively in the market place or target market, McDonald’s uses
segment insights, data and information in context of consume attitude and behaviour that are
urbanized by market investigation and research. With the utilisation of these perceptions,
McDonald make as well as build a potion profile for each product and then they make group and
uses these profiles to frame and formulate effective advertisements targeted to relevant segments
and to the common population.
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Examine the marketing mix focusing on the 4Ps of Next Plc
Marketing mix indicates to the aid and set of activities and strategies which a business
utilises to promote its business or products in the market place. This framework of marketing
assists in understanding the goods and services that are offered through the enterprise to its target
audiences. Along with this, it assist in making plan in context of product offering and assist in
planning, developing and performing efficient marketing plan of action (Zhou, Mavondo and
Saunders, 2019). With the implementation of this plan, a business venture can make utilization
of their abilities and neglect extra and unnecessary costs. In McDonald, the management of the
establishment can use it such as a business tool and marketing strategy. The description of this
framework and analysis of marketing tool is as below in respect to McDonald:
Product- McDonald is one of the world’s leading fast food chains. The respective venture
basically sells hamburgers, chicken food items, cheeseburgers, breakfast food product, soft
drinks, milkshakes and desserts. The particular venture has also included salads, smoothes, fish
wraps and fruits. It is mainly known for its hamburgers food item. All these are the product
strategy in its marketing mix. The original restaurant that was started by McDonald’s brothers
sold only hot dogs, hamburgers, cheeseburgers, milkshakes and French fries. The other products
sold across the world include Big Mac, Big n Tasty, Double Cheese burger, Mc Spicy Burger.
McDonalds offer a variety of breakfast sandwiches which include bagels, biscuits, Hamdesal and
many more. In beverage, Coca Cola is the ordinary dealer of McDonalds. It also offers hot
chocolate and other juices. It adopts the products as per the local taste preference and cultural
identity.
Price- McDonalds includes and follows diverse prices bundling strategy that offer
bundling products with meals and many other products for target customers. To assure target
audiences buy more goods. McDonalds focuses on psychological pricing strategies in its
marketing mix that seem affordable to target audiences (Mu and et. al., 2018). As part of the
promotional pricing strategy, the particular organisation offers discounts and bundling on such
products and amalgamation of different menu items as packed together. Their pricing strategy is
also adopted to tap the lower middle class of the society and people. In McDonalds, the number
of target audiences is young and adult teenagers who are brand cognisant and need expediency.
Place- McDonalds run its business in estimate more than 110 countries with the assistance
of it approx 36000 restaurants at international scale. The several types of formats are Mc Drive,
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Mc Cafe, Mc Express and many others. There is number of McDonald’s restaurants allows
customers to drive locations are near highways that do not offer seating facility. The consumer of
the firm stays these stores and takes the pleasure as well as benefits of the food items and orders
online or gets their favourites goods such as Hamburger and other delivered to their doorstep
(Rahman, Rodríguez-Serrano and Lambkin, 2018). For some the places of international scale,
such as Asian market which is a multicultural nation, the promotional offers are began accordant
to particular circumstances such as Chinese New Year. The location which is selected by
McDonalds in context of the art and is chosen after lot of deliberation.
Promotion- It signifies to those tools and techniques that are used and executed through
the business venture in context of advertising, endorsing and advertising products and services.
With the help of different endorsement and promotional tools as well as methods, the business
venture familiar regarding its commodities and facilities to its target audiences. The particular
firm has invested its more fund on promotional campaign, it makes use of newspaper ads,
billboards, signage sponsors diverse sporting events like FIFA world cup, Olympic Games, Little
league and many more. The respective venture is uses effective promotion while it comes to its
marketing mix. The TV promotion remains the basic form of endorsement, McDonald’s TV
endorsement show people considering popular activities. They have barely used any
unenthusiastic campaign towards their competitors. In addition to these advertisement, the
venture include social media techniques such as Facebook, Twitter, Instagram and YouTube etc.
Along with this, they also make celebrity promotion like the famous celebrity spokesperson and
different other prominent personalities.
Assess the relationship marketing strategy with an emphasis on their current tactics
Relationship marketing strategy refers to those marketing activities that are objected at
developing and administrating long term relationship with the target audiences of the business
venture (Feng, Huang and Avgerinos, 2018). In McDonalds, there are number of marketing
strategies which are included and executed by the organisation to make immense relations with
its target people and these plan o actions create an optimistic impact on the business
development tools and activities of the organisation. The explanation of some relationship
marketing strategies is defined as below that can be considered by the administration of
McDonalds to build effective relations its target people:
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Include social media- Utilisation of social media approach like Facebook, Instagram,
YouTube and many more play an appropriate and adequate role in connecting and making strong
relationship with consumers. In current era, a range of individual use social media so through
using it like plan of action, the management of McDonalds can familiar with individual
regarding their food items and services that will assist in make efficient relation with customers
(Yang, Jiang and Xie, 2019). Along with this, use of these marketing strategies will make a great
influence on the tactics of this firm like endorsement activity and publicity because in term of
promotion and advertisement, the administration o company can use these methods.
Building customer relation through loyalty points- It is another effective plan of action as
different organisation use it through rewarding and compensating consumers for being loyal
towards establishment through issuing bonus, remuneration points and cash back offers to
customers or new purchasers. In McDonalds, the administration can accept this strategy in from
of a relationship marketing strategy that will assist in staying consumers faithful. In specific
establishment, the management offer discount, offers and cash back options to its existing and
new target consumers that will assist in improving the range of target audiences and profitability
of the company. This technique and strategy forms a optimistic impact on the tactics of venture
like customer service management, efficient promotion and others which are used to stay
consumers as when people expand these types of advantages then retain with the company till
long time.
Customer feedback or response- It is another efficient marketing strategy as in McDonalds,
the organisation offer feedback and response option on its venture website and mobile phone
apps so that by determining the response of them, the administration will familiar with the
preferences and necessities as well work in reference to meet of satisfy their needs (Hunt, 2018).
This technique assists in building adequate relationship ad influence on the strategies of the
venture like marketing research and analysis as well as endorsement because with this plan, the
management effectively know with customer requirements and other people will also attract
towards the venture as before taking the advantages of services individual visit feedbacks. So
this marketing strategy will assist in building good employee relation, retaining present
consumer and promoting brand as well as establishing effective position in the market.
Prioritise consumer service- As the name suggests, relationship marketing is all about
relating to their consumers in an optimistic way. That states providing reliable, special support.
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Consumer service should be a centre in all aspect of business model, as it demonstrates that the
firm care about consumer’s demands. Simply ensure, the individual operating their support desks
are friendly, courteous and helpful is not enough. In McDonalds, by considering and executing
this marketing strategy in context of building effective and good employee relation, firstly and
primarily consider the typical consumer service issues in the business (Bocconcelli and et. al.,
2018). In current era, in COVID19 pandemic situation, people are not showing their interest in
visiting restaurants; apart from this they prefer takeaway order service. The management also
offer these kind of services regarding consume needs which also assist in building effective and
strong relation with target people.
Provide recommendations on how Next Plc can develop its marketing strategy
The development of marketing strategy is important because with the assistance of
appropriate marketing plan of action, the company its products and services in manner, attract
large number of people, create awareness about products and services and build a great image
and market position in specific industry. In reference to McDonalds, the business enterprise
utilise appropriate marketing plan of action that enables in providing a range of consumer to the
particular firm (Hung, He and Shen, 2020). In addition to this, in this changing world, there are
several technical modifications occurring that help in making development in the marketing plan
of action of companies. There are some recommendations in reference to development of
McDonald’s Marketing strategy:
 To make improvement in the marketing plan of action, primarily, the particular venture
can profile its potential target audiences so that it can aware with their needs and
providing commodities according their needs and demands. For this, they can ordinarily
review customer feedback on company website and trends so the venture will not miss
out on new growth options or become irrelevant with their marketing message and
information.
 It can be suggested to the company that by profiling its rivals, the particular organisation
can develop its marketing plan of action (Trihatmoko, 2018). By using it, the company
can find out rivalry advantages as well as find out the capability and weakness of its own
initial activities to assist in development of their performance compared with their
competitors.
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 It can also be recommended to the venture that by prioritising consumer needs, the firm
can offer production and services as per their needs. Along with the establishment also
offer services like situation in which people can easily take the benefits of their offered
products and services (Deepak and Jeyakumar, 2019). This will also assist in making
development with the growth and development of the firm in context of profitability and
product as well as assist in building effective relation with its targeted people.
CONCLUSION
It has been analysed from the preceding defined information that business and marketing
tools or strategy are efficient plan of action and tactics which are play an effective and
appropriate function in the development and success of business enterprise. With the help of
effective marketing management tool the venture can administrate its business activities and
operation in context of marketing like selling, buying and promoting goods and services. There
are diverse strategies and framework such as STP analysis and marketing mix strategy that can
be executed and implemented by the business enterprise for enlargement of the company in more
amended manner. Appropriate relationship marketing strategies and tools are essential to build
strong and immense relations with its existing and target people as well as develop business of
the enterprise. By accepting appropriate and adequate tools or marketing, the organisation can
run in more adequate and improved way.
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REFERENCES
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Hollensen, S., 2019. Marketing management: A relationship approach. Pearson Education.
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dynamics. Industrial Marketing Management.
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strategies on firm performance. Industrial Marketing Management, 84, pp.39-49.
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business marketing.
Leonidou, C.N. and Hultman, M., 2019. Global marketing in business-to-business contexts:
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Hunt, S.D., 2018. The prospects for marketing strategy and the marketing discipline in Era V: is
the prognosis promising or problematic?. Journal of Marketing Management, 34(1-2), pp.86-95.
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Bocconcelli, R. and et. al., 2018. SMEs and marketing: a systematic literature
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Hung, J.L., He, W. and Shen, J., 2020. Big data analytics for supply chain relationship in
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Online
Relationship Marketing Strategies for Customer Retention. 2020. [Online]. Available Through: <
https://neverbounce.com/blog/relationship-marketing-strategies>.
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