Comprehensive Analysis of McDonald's Marketing Mix - Activity 2 Report

This report provides a detailed analysis of McDonald's marketing mix, focusing on key components such as change management training programs, pricing policies, promotional methods, distribution channels, and customer service provision. It explores how environmental factors and consumer preferences impact marketing decisions, examining consumer priorities and needs. The report evaluates marketing mix variables against objectives, target markets, and positioning, and proposes a marketing mix that aligns with McDonald's objectives. It also discusses monitoring marketing mix performance, evaluating the implications of altering marketing mix components, and ensuring that the adjusted mix meets budget, strategic, and operational objectives. The report highlights the significance of each element in the marketing mix and their impact on brand equity and customer satisfaction. The analysis includes an assessment of various environmental factors affecting McDonald's marketing decisions, as well as an examination of consumer behavior and its influence on the marketing mix.

Establish and Adjust
Marketing Mix (Activity 2)

TABLE OF CONTENT
TASK 1............................................................................................................................................3
1.1 Key features of change management training program ...................................................3
1.2 Reviewing pricing policy and analysing its variables for determining effects on demand3
1.3 Promotional methods .......................................................................................................4
1.4 Revising channels of distribution and their significance..................................................4
1.5 Identifying and analysing level of customer service provision........................................4
1.6 Identification of potential customer base and key pressure points...................................5
1.7 Analysing and testing effect of marketing mix components............................................5
TASK 2............................................................................................................................................1
2.1 Environmental factors may impact on your chosen marketing mix.................................1
General discussion..................................................................................................................1
2.2 Consumer priorities, needs and preferences affecting marketing mix.............................2
General discussion..................................................................................................................2
2.3 Evaluating marketing mix variables against objectives, target market and positioning. .3
2.4 Marketing mix that best satisfies the marketing objectives of McDonald's.....................4
2. 5 Seeking approval to marketing mix decision..................................................................5
TASK 3............................................................................................................................................5
3.1Monitoring marketing mix against marketing performance and isolate components to test. 5
3.2 Evaluating implications of altering marketing-mix components.....................................8
3.3 Adjusting marketing-mix components in response to test outcomes...............................8
3.4 Ensuring adjusted marketing-mix meets budget needs....................................................9
3.5 Ensuring adjusted marketing-mix continues to meet organisational, strategic and
operational marketing objectives..........................................................................................10
REFERENCES..............................................................................................................................11

TASK 1
1.1 Key features of change management training program
When change is to be introduced in McDonald's, firstly it has to be announced. When it is
announces in the organisation, many people try to resist from it. The employees deal with
changes in a different manner. Some of them quickly adapts to change while some of them needs
additional coaching and mentoring. When the change initiative is announced and explained in the
entire organisation, then training process begins. The accountability of management of cited food
company is to make very clear how the introduced changes will affect their daily routine tasks
and activities (Pride and Ferrell, 2016). The most essential thing for staff of cited firm is to be
capable to adapt to changes and understand that how their individual jobs will assist in
achievement of organisational objectives. In addition to this, the quoted firm may needs to
acquire new set of skills and competencies. Some changes are of such as large scale that they
require providing training to the whole organisation. The setting of goals and objectives should
align with the new direction of firm. For this purpose, timeline and charts should be established
which will be helpful for staff to embrace new skills and knowledge and will provide a meaning
of incorporating training in their day to day activities.
1.2 Reviewing pricing policy and analysing its variables for determining effects on demand
The biggest challenge for McDonald's is to find out how much to charge for its offerings.
If prices are very high, then demands for its products may decline. If it is very low then it will
reap losses and will create a perception in minds of customers that the food may be of low
quality (Srinivasan, Rutz and Pauwels, 2016). This in turn will again affect demand in negative
manner. Or vice-versa may also happen. For revising the pricing policy, mentioned food
organisation should follow the below stated steps:
 Revising hourly costs: If the cited firm knows what are its costs then it can figure out its
hourly labour rates to charge from its customers.
 Revising industry mark-ups: This is another good method in which firm should find out
how much the other food companies are charging (Wedel and Kannan, 2016). This can be
on the basis of industry standards.
 Reviewing supply and input costs: Input costs and availability also influences mark-ups
of products and therefore profit margin of the firm.

1.3 Promotional methods
McDonald's can adopt several promotional techniques and methods for communicating
with its target market which will be determining its significance for marketing results. These
promotional methods are described below:
 Internet promotion: This methods comprises of communicating through the use of
websites which will be creating virtual image of company, present its products and
services and press releases. It can take use of banners, newsletters, link to website of
company, pop-ups etc.
 Promotional gifts: The quoted food company can offer small gifts which is printed with
the name of products or logo of company (Bojanic and Reid, 2016). This will make a
good impression in the minds of customers which will a reminder of the firm. These gifts
can be small food items which are very less costly or any kitchen accessories.
 Customer appreciation programs: The cited firm can arrange customers appreciation
events along with free of cost refreshments and door prizes which will attract them to
visit the stores.
1.4 Revising channels of distribution and their significance
There are different type of distribution channels such as Manufacture to customer,
Manufacturer to Retailer to Consumer, Manufacture to Wholesaler to Consumer, Manufacturer
to Agent to Wholesaler to Retailer to Customer. These different channels have their own merits
and demerits. McDonald's has to consider their advantages and disadvantages which as they
affect significantly on the marketing strategies and profitability (Rowley, 2016). It should not
prefer very lengthy channels as it may take very much time and resources which can increase it
cost. For instance, Manufacturer to Agent to Wholesaler to Retailer to Customer is very long
channel. These channels are very important as they fill the gap which is created betwixt
producers and customers. They works as a link between them. They are supportive in making
products available on correct time at the right place with the correct quality.
1.5 Identifying and analysing level of customer service provision
To identify and analyse the level of customers service provision, McDonald's has to see
that the the services which are being provided are satisfying its customers or not. If they are
happy and contended with the way of providing services, then the firm is in right direction. To
see if they are contended and happy with the products and services, cited firm can conduct

customer satisfaction surveys which can be in-app surveys, Post-service surveys and long Email
surveys (Kraus and et. al., 2016). Then quoted firm can also go for Customers Satisfaction Score
which is a very standardised customer's satisfaction metric in which customer are asked to rate
products, services and business. Then one another method is Net Promoter Score which
measures the likeliness of customer. This method is very famous to measure the loyalty of
customers also. Apart from these methods, Customer Effort Score is also an effective method in
which likeliness or satisfaction in to asked, but efforts they put in solving their issues are asked
to them.
1.6 Identification of potential customer base and key pressure points
To identify the potential customer base, there are some of key factors which are to be
taken into account. These play factors have a decisive role. They are location, concept,
demographics and marketing. The location of McDonald's should be reachable and handy for the
customers which it desires to attract (Pecotich and Shultz, 2016). The prices of products, interior
of stores and the food items should be catchy and applicable for the target customers. By doing
some deep research it will be helpful for finding out which demographics are most close to
company in terms of economic range, mentality and physical location. Quoted food organisation
can also give a look to other food companies to know which type of firm are attracting particular
target groups of customers. With this, cited firm can also carry out primary research through
interacting with prospective buyers.
1.7 Analysing and testing effect of marketing mix components
The elements of marketing-mix such as product, price, place and promotion makes a
significant impact on the customer satisfaction. If the products offered by Mcdonald's are of high
standard then the customer will be satisfied and happy. If prices of products and services are
reasonable then it will increase gratification of customers. If stores are situated in convenient
location then it will also increase the level of contentment of customers (Srinivasan, Rutz and
Pauwels, 2016). If promotional strategies and methods adopted by cited food company are very
fascinating, then it will lead to high level of customer satisfaction and happiness. The elements
of marketing-mix also affects on brand equity of the quoted company. The perception of
consumers will be good if the components are working in a good manner. This in turn will
improve the brand name of its food products instead of product or service itself. In this manner,
it will improve the brand value as well as brand equity of cited food organisation.

TASK 2
2.1 Environmental factors may impact on your chosen marketing mix
General discussion
There exists varied environmental factors that directly impacts upon the marketing
decisions of an organisation where it is presently based upon a chosen food organisation named
McDonald's. There exists total two distinct types of environmental factors namely internal and
external environmental factors where the intrinsic environmental constituents defines the internal
bodies of the enterprise such as their top administrative bodies, Research and development
(R&D) department, manufacturing, finance and accounting, etc., (Axelsson and Easton, 2016).
However, the extrinsic components are again divided into two segments of macro and micro
environmental factors where the micro constituents are the organisational bodies like the
suppliers, customers, contenders and governmental bodies, etc. Wherein, the macro environment
is composed of varied driving market forces such as demographic, technical, economic, physical,
legal, political, social and cultural, etc.
Marketing mix 4Ps Identify environmental factors
Product (or Service) Demographic
Place Physical
Price Economic
Promotion Competitors
Marketing mix 4Cs Identify environmental factors
Customer needs and wants Demographic

Cost or price points Economic and Competitors

Convenience, which relates to place Technical and Suppliers
Communication or promotion Technical
Expanded marketing mix Identify environmental factors
People Demographic
Processes Legal
Physical layout decisions Political
2.2 Consumer priorities, needs and preferences affecting marketing mix
General discussion
This is to discourse upon the affect of consumer priorities, needs and preferences on the
above chosen marketing mix that is based upon an elected food organisation named McDonald's.
In context to which, it has been found that in accordance to the carried perception of
McDonald's, customer preferences is an utmost consideration for the success of their proposed
goods and services (Christopher, Payne and Ballantyne, 2013). It is also in concord to their prior
experiences where many changes were unsuccessful to meet the factual needs and demands of
their consumers with an ultimate failure to the integral goals of the establishment. Wherein,
McDonald's is an internationally famous brand that is operating in almost all corners of the globe
with a pertinent intent of meeting out the expected consideration of their clients and users. With
reference to which, they have hereby categorised their targeted set of customers in three pivotal
divisions that are-
 Parent with children- It is where the parents are mostly visiting McDonald's to give
a treat to their children.
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 Children's- It is the group of children visiting the restaurant as a fun place to eat
delicious food.
 Business customers- It is with a special consent of those clients and users who are
visiting this place at day time to have a quick food that is rapidly served to them and
can be consumed without striking their busy schedule's (Fletcher and Crawford,
2013).
 Teenagers- It refers to those who come to McDonald's with a due purpose of
hanging out with friends and looks for an affordable and pocket friendly service.
Example provided Marketing mix
4Ps
Marketing mix
4Cs
Expanded mix
Required or preferred
products/services
It is context to the
offered products and
services of
McDonald's where it is
required to meet the
preferences of the
customers under an
affordable cost.
It is mainly with
reference to the 4C's of
marketing mix where
McDonald's is hereby
required to satisfy the
factual demands of
their consumers with
convenient measures
of communication and
distribution, etc.
It is in context to the
physical dimension of
McDonald's by
together appointing
efficient staff members
to serve the users in a
preferable way.
2.3 Evaluating marketing mix variables against objectives, target market and positioning
SWOT analysis is composed of four leading constituents as referred below-
Strengths-
 Established as a brand name
 Advertisements are effective and impressive.
 Alliance with Coca Cola.
 Hygiene and cleanliness maintained all-over.
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 Special play space for kids Regular training given to employees
Weaknesses
 Poor development of products Weak Franchisee management
Opportunities
 Globalisation of the brand Enhancement of dining out market
Threats
 Increasing health consciousness among consumers
 Local rivalries in all the countries
 Recession of international economy
2.4 Marketing mix that best satisfies the marketing objectives of McDonald's
It is mainly in context to the undertaken marketing objectives of McDonald's in
accordance to their marketing mix decisions. Wherein, there exists below stated objectives of
McDonald's in terms of marketing-
 To make an effortless availability of goods to the consumers.
 An easy availability of value added services to the customers.
 A simple procedure of complaint handling.
In concord to which, below is the marketing mix decision of McDonald's that is yet again
composed of four leading elements stated as- Product- Standardised offering of McDonald's in the form of fast foods with a speciality
in burgers is referred to be their proposed services where they have recently tried to
diversify in the section of healthy food to lessen down their image of junk food provider. Price- An affordable stricture of pricing is being adopted by McDonald's to serve a large
number of consumers from almost all age groups. Place- It is currently spread around all medium to big cities with near about 1200
number of restaurants in France (Hunt, 2014). Wherein, recently they have also adapted
a new mode of serving the children in a very comfy and decorative manner with distinct
set of games.
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 Promotion- Latest media tactics are being used by them as a way of promoting their
offered products. It is along with some conventional measures of advertisement where
they are together envisioned to use the tact of sales promotion, telemarketing and direct
marketing, etc.
2. 5 Seeking approval to marketing mix decision
It is basically in accordance to the above identified objectives of McDonald's in context
to their undertaken marketing decisions, where their organizational objectives involve to render a
quality service to their users (Leonidou, Katsikeas and Morgan, 2013). It is in context to their
strategic goal where they are together convergent to satisfy their customers to a greater possible
extent as a way of creating a reputable image. It is with an ultimate goal of outreaching the entire
community for which, McDonald's is hereby recommended to pursue the below prescribed
marketing mix- Product- They should hereby refer to exclude the tact of standardised and rather propose
distinct set of menus to fulfil different preferences of consumers from all over the world. Price- The pricing structure should be set on considering the adopted tact of their
contenders where they can also refer to provide discounts. Place- A more comfortable seating arrangement for the customers with quick online
delivery at all possible locations should be made with a special consideration of serving
the children with a separate play station for them (Moran and Hunt, 2014).
 Promotion- Discount vouchers on occasional basis with a special consent of festive
offers can also be provided by McDonald's.
TASK 3
3.1Monitoring marketing mix against marketing performance and isolate components to test
Market response
Reach to Customer
Estimated Actual Variance
Total Reach 8500 2453 6047
Leads 2000 321 1679
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Customers 245 46 199
Outcomes 09/21
Reach-to-Lead %
Lead-to-Customer %
Reach-to-Customer %
Promotional
Activities
Estimated Actual Variance
Direct Mail 3.4% 4.8% 1.4%
Email Marketing 4.8% 2.2% 2.6%
Organic Search 12.4% 23.4% 11.0%
Website Traffic 30.0% 22.3% 7.7%
Networking 8.8% 6.2% 2.6%
Social Media 19.2% 23.2% 4.0%
E-brochure 9.2% 6.9% 2.3%
Local Radio 12.2% 11.0% 1.2%
Total 100.0% 100.0% 32.8%
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Legend:
Total Reach:
Total number of prospective customers who are exposed to MyRTO's
promotional activities.
Leads:
Total number of customers who are ready to make a purchase.
Customers:
Total number of customers who finalised a purchase.

8

9
Legend:
The table above shows the conversion rate of total reach to customers by
promotional activities.
Estimated:
Estimated conversion rate prior implementing the marketing mix.
Actual:
Actual conversion rate after implementing the marketing mix.
Variance:
The 'gap' or 'surplus' between the estimated and actual outcomes.
Example:
MyRTO projected to capture 3.4% of their customers through a direct mail campaign,
however, the outcome was 4.8% - which yielded 1.4% more than expected.

 Calculation of variance between planned and actual results
Quarter 1
January
Projected Actual % Actual Variance
Public $5,75,600 $2,64,400 13.9% $3,11,200
NGOs $4,51,500 $3,36,000 17.7% $1,15,500
Corporate $10,29,895 $12,98,487 68.4% -$2,68,592
Grand Total $20,56,995 $18,98,887
February
Projected Actual % Actual Variance
$6,33,160 $2,30,028 13.9% $4,03,132
$4,96,650 $2,41,920 14.6% $2,54,730
$11,32,885 $11,81,623 71.5% -$48,739
$22,62,695 $16,53,571
March
Projected Actual % Actual Variance
$6,96,476 $4,83,059 22.5% $2,13,417
$5,46,315 $5,08,032 23.6% $38,283
$12,46,173 $11,57,991 53.9% $88,182
$24,88,964 $21,49,082
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 Investigating the causes of variance
It is however on investigating the causes of variance, below are the identified measures-
Product- There exists a positive variance in the actual and budgeted data that shows that the
existent output of the production unit is much more than the budgeted units.
Price- The planned price of the training programmes are more than the existent prices that are
being set that shows an inauspicious outcome as a way of attaining the orientation of pricing.
Promotion- The advertisement cost is unfavourable where the actual cost is much higher than
that to the budgeted data that is negative from the aspects of impacting upon the overall potency
of the enterprise (Strauss, 2016).
Place and distribution- Here exists certain favourable results of distribution that is evident to
impact upon the aspects of impacting upon the overall potency of the establishment.
Customer services- There exists deficiency in the anticipations of the customers of McDonald's.
 Isolating components for testing
Marketing mix components Test Strategy Expected Outcome
Product Production process of
McDonald's is being tested
over here and its several
aspects that can impact upon
the overall potency of budget
Here it is evaluated that the
varied aspects of their
production procedure is
effective in terms of
provisioning some effective
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(Kumar, Choi and Greene,
2016).
results.
Pricing Here varied measures of
costing has been analysed as a
way of discovering the most
impelling way of pricing the
commodities of McDonald's.
It is expected that this will
bring upon certain effectual
measures to fix the product
price of McDonald's within a
budgeted context.
Promotion Promotional expenses are
required to be evaluated over
here.
Some effective measures of
promotion are being expected
to discover such facets that
will in turn amend the overall
potency of McDonald's (Kraus
and et. al., 2016).
Placement Varied channels of distribution
are being analysed over here as
a way of impacting upon the
overall potency of the quoted
entity.
Some further scope of
betterment is being anticipated
over here to reach out the most
effective measures of
distribution.
3.2 Evaluating implications of altering marketing-mix components
Scenario Implication of consumer response
Scenario 1: Change in product
There exists certain modifications in the
consumer's respond that can impact upon the
company either in positive or negative manner.
It can together impact on the entire potency of
the firm by together affecting on their purchase.
Scenario 2: Change in prices There exists several facets that could effect on
the total effectiveness of the organisation by
together impacting upon consumer demand
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(Jackson and Ahuja, 2016).
Scenario 3: Technical development
There exists varied prospects that could directly
impact upon the overall potency of the channels
of distribution and promotion undertaken by
McDonald's.
3.3 Adjusting marketing-mix components in response to test outcomes
Marketing mix
variables Target market 1 Target market 2 Target market 3
Product
There exists a revised
reasoning of distinct
aspects that are
involved in the
undertaken measures
of production that in
turn effects on the
overall potency of
McDonald's (Pecotich
and Shultz, 2016).
In is in context to the
service market where
the method of
production will refer to
the services that are
being provisioned by
McDonald's to impact
upon those prospects
that are related to their
overall performance.
There could be certain
effectual measures on
the overall potency in
the public market of
McDonald's with such
aspects that can in turn
impact upon their
overall potentiality as
well.
Pricing
Testing of the price
structure together helps
in taking effectual
pricing of goods and
services in the market.
There exists certain
changes in the
undertaken strategies
of pricing that may in
turn impact upon the
overall potency of
McDonald's.
Testing price in this 3rd
set of market is
expected to lead into
some impelling
outcomes.
Promotion Promotions are being
formulated by
The undertaken
strategies of promotion
There exists varied
prospects that can
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conducting a prompt
analysis in this market.
are being assessed over
here (Saboo, Kumar
and Park, 2016).
impact upon the overall
potentiality of their
undertaken strategies of
promotion.
Distribution
Distribution is being
reinforced in an
effectual manner.
Distribution is referred
to be in an invariant
state in this
marketplace.
There exists varied new
schemes that are being
recognized in this set of
market.
Customer service level
The satisfaction level
of customers is
efficacious and
invariant in this
marketplace.
Herein, the satisfaction
level of consumers is
being reinforced in an
effective manner.
Distinct techniques are
being assessed in
several aspects that in
turn impact upon the
overall effectiveness of
McDonald's (Xu and et.
al., 2016).
3.4 Ensuring adjusted marketing-mix meets budget needs
Marketing mix
variables Budget factor Budget Actual Market
data Variance Favourable/
Adverse
Product Unit of production 250000 255000 5000 Favourable
Price Pricing 2500 2750 250 Favourable
Promotion Cost of
advertisements 185000 220000 35000 Unfavourable
Place And
Distribution
Expenses of sales and
distribution 200000 195000 -5000 Favourable
Customer
Services Number of consumers 5000 4400 -600 Unfavourable
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