Marketing Essentials Report: McDonald's and KFC Strategies Analysis

This report offers a comprehensive analysis of the marketing strategies employed by McDonald's and KFC. It begins with an introduction that defines marketing processes, roles, and responsibilities, emphasizing the importance of marketing and its interrelation with various functional departments. The report then profiles McDonald's and KFC, detailing their objectives and marketing mixes, including product, price, place, promotion, physical evidence, people, and process. A marketing plan is also provided, featuring an executive summary, company overview, PESTLE analysis, value chain, SWOT analysis, objectives, strategy, segmentation, targeting, positioning, tactics, actions, budgets, and control measures. The report concludes by summarizing the key findings and providing references.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
Overview of marketing processes...............................................................................................1
Role and Responsibility..............................................................................................................2
Importance of marketing.............................................................................................................2
Effective interrelation between different functional departments...............................................3
LO2..................................................................................................................................................3
McDonald Profile........................................................................................................................3
KFC Profile.................................................................................................................................4
Element of marketing mix of McDonald....................................................................................4
KFC marketing mix.....................................................................................................................6
MARKETING PLAN......................................................................................................................8
Executive summary.....................................................................................................................8
Company overview.....................................................................................................................8
PESTLE Analysis........................................................................................................................8
Value chain..................................................................................................................................9
SWOT analysis of McDonald...................................................................................................10
Objectives..................................................................................................................................10
Strategy.....................................................................................................................................10
Segmentation, targeting and positioning...................................................................................11
Tactics and Actions...................................................................................................................11
Budgets......................................................................................................................................11
Control.......................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

Illustration Index
Illustration 1: Marketing Mix...........................................................................................................4

INTRODUCTION
Marketing is a process in which products are buy and sell by using effective promotional
strategies. It includes all those methods which help the organisation to attract the large number of
people with the use of advertisement, newspaper, television etc. The present report analysis the
marketing strategy which are adopted by the McDonald company. It explains the role and
responsibilities which is related to the marketing functions. By making comparison between
McDonald and KFC as per the marketing mix, it helps to identify the planning function which is
useful for the company's growth. Furthermore, by framing a marketing plan, organisation can
analysis the basis core concept which is useful for the firm (Andrée and Hansson, 2013).
LO1
Overview of marketing processes
Marketing is a process of exchanging the product and services among the buyers and
sellers. It includes various activities of business like advertising, distribution, communication,
presentation etc. In the present trend of marketing, its main aim is to discover the actual
requirement of the customers and satisfy their needs related to the product and services.
McDonald is one of the famous food retail business enterprise which deals with the various
delicious food products.
Company needs to consider in developing innovative and creative product and services
which satisfy customer needs. In the context of McDonald, its aim is to deliver the high quality
of food product to customer and earn maximum customer attraction. In order to attain this
objective, it has to understand the following process of marketing-
Marketing Research- In this first stage, McDonald required to analyse the actual market
condition and discover the needs and wants of customer about the commodity.
Strategy- After analysing the actual needs of the customer, in the next stage company
develops the strategy to satisfy the needs and wants of customers.
Budget- While strategy is effectively developed then in the next stage, McDonald will
look toward the budget and financial resources which need in the process (Stephen Neville,
2014).
Tactics- In this stage, appropriate action can take by company to implement the strategy.
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Implementation- In this stage finally marketing strategy can implement in the market for
attain the determined objective.
Control- In this stage company design the measures to control the overall marketing
plan.
Role and Responsibility
In the everyevery department of McDonald like marketing, finance, human resource,
finance, administration etc. requires. It has various roles and responsibilities which are as
follows-
Exchanging commodity: This is major responsibility of marketing by which product and
services are exchanging between buyer and sellers. Its value is determined in terms of money. In
the absence of marketing, customer can notcannot buy the product and firm can notcannot sell
the items.
Introduce the product- This is another major role of the marketing by which company
can easily introduce the new product and services in the market. It assists in promoting and
advertising the commodity in front of customers (Pike, 2015).
Attract new customers- As per this responsibility, company can attract the large
numbers of customer toward the organisation. Marketing assist in promoting the brand in the
market so as customer can get aware about the new items which launch by firm.
Brand awareness- Marketing helps corporation in creates the own brand image in the
market. With help of effective advertisement and promotion practices, firm creates the
impressive image of the brand in mind of customers.
Sales Support- Marketing have another role which assist McDonald in improving its
sales in the market. With help of this concept, company advertise its commodity in the market
which aid in enhancing its sales
Importance of marketing
Marketing assist to the organisation in introducing the product and services in the market
and attract the large amountnumber of customers.
With help of marketing, company can develop its impressive brand image in the market.
It distinguishes company image from the others competitors. Marketing assist in developing
effective public relation. The marketing mix concept aids in deliver the right product at the right
time and at the right place (Achrol and Gundlach, 2014).
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Effective interrelation between different functional departments
Every business organisation havehas various functional departments like finance, human
resource, marketing, administration, operation etc. All of these departments have major objective
is to attain the common objective of the company but their function and activities are different.
Following are major functional department of McDonald and its relationship are as follows-
Marketing department- This department have main function is to deliver, promote and
sale the product and services. In the McDonald, this department assist in promoting the food
product in the market and attract the customer towards (Truong and Hall, 2016).
Finance department- Finance department have major role is to maintain the records of
the finance of the company. Finance manager have main aim is to keep proper record of the
finance.
Human resource management department- This department recruit the new candidate
for the company. It has major role to recruit, manage, motivate employees for the attainment of
the objective.
Production department-This department is directly relationship with marketing
department because while production department produce and services then marketing
department can enable to deliver the product in the market.
LO2
McDonald Profile
McDonald is the largest food retailer which was founded in 1940 in the form of Barbecue
restaurant. Firm dealing in various kinds of food products and operate its business in more
thatthan 36615 locationlocations across the world.
Objectives
 McDonald have great objectives is to provide high quality of products and satisfy the
need of customers.
 Cited firm also try to make great position in the market by acquiring the highest number
of shares in the global market (Bello, Adeogun and Oke, 2016).
KFC Profile
KFC (Kentucky Fried Chicken) is a fat food restaurant which was founded by Sanders
Court & Cafe in 1930. It deals in 19952 locationlocations in different countries. Cited firm
provide various kinds of food such as fried chicken, sandwiches, wraps, salads, desserts, soft
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drinks etc. It also provides employment opportunities appropriate 335000 employees across the
world (Fahy and Jobber, 2012).
Objectives
 Cited firm trytries to become number one food dairy company by acquiring large number
of people.
 KFC try to set a benchmark by making good brand reputation in the market.
Element of marketing mix of McDonald
Illustration 1: Marketing Mix
(Source: Marketing mix, 2015)
§
Product: McDonald is world famous food retailers which provide varieties of food items
which have high quality. Cited firm offers various types of breakfast menu like salad, sandwich,
Flesh Fish, etc. It also tries to provide all these products in an affordable pricesan affordable
price so that it can attract the customers in large scale. By conducting the research, it has been
found that company launched Maharajah McBurger in India which creates high demand of it
(Winston, 2012). In addition to this, it offers Halal food in Saudi Arabia, Kuwait, Hamburgers in
America etc.
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Price: Pricing strategy of the cited firm is unique from their competitors. It offers quite
affordable products and brand core value products. For example: McAloo tikki at Rs. 20 to 39
etc. McVegiee at Rs. 50 to 60 etc. By setting the price of products, McDonald make
psychological connotations and use cost leadership styles. It also focuses on heavily marketed
such as "Happy Price Menu"and provide combo offers to their customers (Shankar, 2011).
Place: McDonald is mainly focused on the location or place by which firm can attract the
customers. Choosing the right place help to make positive impact in the growth of organisation.
In addition to this, cited firm located itself in prime locations such as malls, shopping complex. It
operates its business in big cities so that it can be easily accessible by the customers.
Promotion: To promote their products cited firm use various advertising techniques such
as T.V, radio, cinema, online, posters and press like newspapers and magazines. Company also
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uses other methods to promote their products, which include point of sales display,
merchandising, direct mail, loyalty schemes, door drops etc. It was also found that to attracting
their customers, McDonald offers lucky draws, scratch card (Noel, 2009).
Physical Evidence: It is a process which make great impression not only outsiders but
also the company's internal level. It the way of business functioning with the use of staff
members, location, appearance, maintenance of building and interior.
People: Workers, employees make great impact in marketing of products. In respect to
this, cited firm adopt the philosophy of quality, services, cleanliness and value by which they can
provide effective guidance to their staff members. Firm also adopt fast friendly services and
decide a standard uniform for their employees.
Process: By using this marketing style, McDonald provide transparent food producing
activity in front of customers. Firm also develop new method of packaging and distribution. By
using most efficient cooking equipment, it allows their customers to check the ingredients which
are used in food (McDaniel, Lamb and Hair, 2012).
KFC marketing mix
Product: KFC is a world largest food retailer which provide veg and non-veg dishes to
the customers. It mainly focuses on providing fried chicken, chicken burgers including Zinger
and Tower Burgers, wraps and variety of finger foods such as crispy chicken strips and hot
wings. As per the recent analysis, it was found that cited firm has launched Flaming Crunch
Chicken in the market. There are varieties of side dishes like French fries, bread rolls, salad and
soft drinks to their customers.
Price: KFC pricing strategies are affordable so that it can be easily taken by the
customers. Firm also provides discounts on bulk purchasing and while taking single unit it can
provide in an affordable price to the customers (Lovelock, Wirtz and Chew, 2009).
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Place: KFC offer their products over 300 outlets across 81 cities. Firm also make
planning to have over 500 outlets by the end of 2017. It also available in online media so that it
can make effective approach in global level. By using quick service restaurant, it has overtaken
Pizza Hut effectively.
Promotion: KFC always try to make promotional activity by offering additional changes
in their menu, gift cards, T-shirts etc. By using LCD displays firm try to promote their product's
outlets effectively. There are some other ways like online advertising, Television etc. are best
example by which firm can promote their products.
Physical Evidence: It refers to the physical environment of outlets which are visited by
the customers. In respect to this, firm make effective interior to the certain standard which help
to create positive influence in customer satisfaction level. They also use new
equipmentsequipment while producing their quality food items.
Process: KFC believes that their process will start when customers visit the outlet. Cited
firm use the process by which they can manage their need. As per the result, the easier process
helphelps to lead the satisfaction level of customers (Lamb, Hair and McDaniel, 2011).
People: Firm also appoint large number of people who provide services to the customers.
They hired all the trained staff members so that they can communicate with the customers easily.
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MARKETING PLAN
Executive summary
In the business plan of McDonald, company analysis their internal and external factors
which highly influence their marketing activity. By use of SWOT, PESTLE and value chain
analysis, cited firm determine its core- competencies. This plan includes the criteria by which it
can develop new product into the new market. It also analysis the segmentation, positioning,
strategy which are related to the marketing plan before launching new product (Kotler, 2011).
Company overview
McDonald is a largest food retailer which deal in 36000 locationlocations and develop
80% restaurant across the world. The main objective of cited firm is to provide high quality
products in an affordable price to the customers. It provides more than 420000 employment
opportunities so that it plays a great role in development of society. Company also operate and
give their franchisee which provide services in locally in an affordable price. Hence, firm try to
maintain their brand image by making all the positive efforts.
PESTLE Analysis
McDonald is a famous retailer so that there are various kinds of factors which affect their
growth. By analysing the PESTLE of the company, it can foundbe found the opportunities in the
future. These are:
Political factors: Government policies and their rules do not make heavy impact so that
McDonald enjoys the advantage in those countries where consumer protection act is strongly
applicable. On the other hand, while operating internationally sate policies make great impact in
their operational work (Hollon, 2004).
Economic factors: It includes the rate at which particular country's economy were
increases while every purchase of the product. Hence, McDonald is a market leader which make
high target in market by providing low cost and generate more income.
Social factors: McDonald highly effect the society and their culture. Due to gap between
rich and poor, company has an opportunity to focus on middle and lower income people. Firm
uses various strategies so that it can overcome its threats and use marketing mix to satisfy the
demand of society (Holliman and Rowley, 2014).
Technological factors: McDonald highly focus to provide hygienic food products to
their customers, Inin order to this, it uses new machine and equipments so that firm is updated as
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per the changes in technologies. By using new techniques, it provides training to their employees
so that they can work as per the plan effectively. For example: By use of computer and smart
machines are the best example of development of their staff members.
Legal factors: It includes low payment of wages, burden of legislation etc. make
negative impact in company's revenue. All the taxation policy, service charges are fluctuated in
nature, which affect the price of their product.
Environmental factors: It includes changes in their working pattern as per the climate,
seasons or atmosphere in which company can operate its activity. For example: In winter
seasonseason, theirthere will be high demand of hot food items such as hot drinks. In order to
this, company need to develop and adopt new working style to satisfy the human need.
Value chain
Inbound Logistic: It is the stage in which raw materials are collected and company
determine the quality as per the reducing its cost.
Operations: McDonald have their various kinds of franchisee such as opening new
schools, developing licenses. It can be said that company do not play with the capital but it only
used the license of the cited company.
Outbound Logistic: McDonald mainly concern on their packaging and provide
hygienic place by adopting echo friendly environment. It also provides fast services, innovative
outlets to the customers (Glowik and Smyczek, 2011).
Marketing & Sales: Firm use various types of promotional;s activitiesy such as
advertisement, Television, social networking sites, posters etc. It also offers discounts, loyalty
coupon, gift card to the customers. By using these techniques, McDonald highly attract their
customers in a large scale.
Service: McDonald not only provide food items but alsoalso, they render facility such as
Wi-Fi service, gifts in different occasions to their customers.
SWOT analysis of McDonald
Strength
 Effective advertisement strategies and
good brand image
 Provide safety and quality products
 Social responsibilities like giving
Weakness
 Failure to meet the trend
 Employees turnover is high
 Competition in price
 Unhealthy food menu
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