Marketing Essentials: McDonald's Strategies and Analysis Report

This report provides a comprehensive analysis of McDonald's marketing strategies. It begins with an introduction to marketing and its importance, followed by an examination of the key roles and responsibilities of the marketing function within McDonald's, including brand image creation, campaign management, market research, and customer relationship management. The report then explores the roles and responsibilities of marketing in relation to the wider organizational context, such as financing, human resources, research and development, and customer service. A comparison of the marketing mix of McDonald's and Tesco is presented, highlighting differences in product, price, place, and promotion strategies. The report concludes with a detailed marketing plan for McDonald's, encompassing market research, product development, communication, and promotional events. The report emphasizes the importance of understanding consumer needs and preferences in developing effective marketing strategies and maintaining a competitive edge in the fast-food industry.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of the marketing function......................................................1
P2 Roles and responsibilities of marketing related to wider organisational context..................4
TASK 2............................................................................................................................................6
P3 Difference in marketing mix of McDonald and TESCO......................................................6
TASK 3..........................................................................................................................................10
P4 Marketing plan of McDonald...............................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES ............................................................................................................................15

INTRODUCTION
Marketing is a wide term which aids in creating positive perception in the mind of
consumers. It includes various set of activities that helps in promoting goods or services and also
supports in the movement of goods or services from manufacturer to consumers. It is very
important function for every organisation because with the assistance of this, company can attain
its specified result or outcome. In other terms, it can be said that it is a process of directing,
creating, delivering, communicating and exchanging offerings which have value for clients,
consumers, society and partners of individual or business organisation (Abushadi and et. al.,
2015). In today competitive environment, this activity is most important because it aids in
attaining competitive advantages over its rivals. This project is based on McDonald which is a
multinational company that deals in fast food restaurant chain. It provides various range of
products or services such as burger, French fries etc. This report will state about the key roles
and responsibility of marketing functions and their relationship with other organisation function.
Place, product, price, promotion, people, physical evidence and process are main parts of
marketing mix which is used by business company to promote and improve its existing product
performance so that it can attract large number of consumers.
TASK 1
P1 Key roles and responsibilities of the marketing function
McDonald's marketing is done by listening to their customers. Its strategy basically
focuses on its new product development, promotions and communicating with its consumers.
This department has to perform various roles and responsibilities which are given below-
Role of marketing functions-
 Create brand image: This involves explaining how a company acts in their marketing
operations, what organization stands for etc. which aids in creating positive brand image
in the society. A negative marketing strategy can lead to loss of image in the market.
MacDonald's cannot compromise with its image of being one of the best fast food
company works on the marketing where it can expand its business across the globe
(Berkowitz, 2016).
1

 Conducting campaign for marketing of products: By this, institution can expand their
sales of product by distributing free sample and can also focus on sales cycle of goods
and services.
 Arrange materials: The company has to arrange material for marketing of the products
by describing their core goods and services. It also includes keep their offers up to date
according to the changes in fashion and preferences of the customers.
 Internal communication: It is very important for any organisation to communicate with
their employees so that they can understand company's goals, objectives and values. This
is also a marketing function (Blythe, 2012).
 Research of market and customers: Research basically helps in identifying target
customers and their preferences and choices which aids in developing products according
to the changes in choices and taste of different customers.
 Vendors and agencies: There is some agencies and vendors who manage marketing
materials of products and support to company's fictions. These includes web providers,
PR agencies.
 Customer relationship: Marketing plays an important role in establishing better
relationship with their consumers. Customer satisfaction could not be achieved without
marketing and product success probability reduces. Consumers can move to any other
options which are available in the market. McDonald's has a very large young age group
base customers who needs a low price and variety in product range.
 Increase revenue: Continuous growth is evaluated for any company by amount of profit.
It attracts the large number of people and encourages to them so that they will be ready
for taking its services.
Responsibilities of marketing function:
 Listening clients requirement: It is the most important liabilities of marketing
department because if it will not address their problems then it may loose their consumers
as well as their market share (Desai, 2011). For this propose, firm can organise survey to
getting the information about various customers which will help in increasing the sales of
the enterprise.
2

 Coordinate with marketing partners: Partners include consultants, publishers and
designers. It is very important that work of these partners matched with the objectives of
the company.
 Innovation: Marketing department considers innovative function that are required in
today competitive environment. Marketing manager has to modify their products
according to preferences and taste of different customers.
 Contact with customers: It is important for marketing function to direct contact with the
clients so that company can deliver better services.
 Make marketing strategy: Without any tactics, there is no possibility of delivering
better quality of goods and services to customers. It should be cost effective and matched
with objectives of the enterprises.
 Generating revenue: Ever increasing revenue is what a company focuses on while ding
its marketing. Marketing plays an important role in designing revenue structure of an
organisation (Dibb and Simkin, 2013). Proper marketing mix (4P's) is chosen by
MacDonald's so as to make its product launch and sale successful. Its sales is approx 40
billion dollars from 30000 outlets around the world.
 Market Research: MacDonald's being a fast food company its necessary to do market
research before any of its product can be introduced in market. Its every product must
please customers. Market research includes trends evaluation of target market basically
children and youngsters. It includes product sale estimation and its competitors present
strategies of their new products. MacDonald's face stiff competition from local vendors
also so their involvement in market cannot be neglected while doing market research.
 Product development: Marketing team and product development team works in a team
so as to modify its products and increasing product variety as per new demands of market
(Essentials, 2015). Product development varies from packaging of food items, its taste,
price range etc.
 Communication: It is an important responsibility of marketing team to work on
advertisements of products. Depending on product and available budget company plan its
advertisement campaigns. Various communication mediums used generally are
distributing leaflets or brochure, giving ads on e-commerce websites, press release and
product publication. With its premium brand image it has to focus more on its product
3

than on establishing company in the market. Conversation is very important between the
various employees and it is important that goal and mission has to be common of every
employee to full fill the objectives of the company (Goedertier and et. al., 2010).
 Promotional events: Marketing team organises promotional events such as sales
seminars, exhibitions and provides key and necessary information to the people.
McDonald's with its press briefings launches its new product hence creating more buzz.
P2 Roles and responsibilities of marketing related to wider organisational context
Marketing functions includes set of activities by which organisation improves their
business operation and attain its objectives and goals of profit maximization and revenue
generating. In today global environment, marketing strategies play a vital role because with the
help of this tactic, McDonald can identify the needs or wants of consumers which aids in serving
to them effectively and efficiently so that their needs or wants can be satisfied. If enterprise
wants to get success in the market then it should make strategy which will help in satisfying the
needs or wants of consumers (Jones and Rowley, 2011). In McDonald, there are various types of
functions which have to performed by marketing department and mangers so that they can get
their vision or mission statement. Marketing functions are interrelated with other organisational
task in the following way which are given below-
 Financing of services- It is the most important function for an organisation because
without having proper amount of financial resources, no task can be completed
effectively and efficiently. For example- For carry out marketing campaign successfully,
there is requirement of lots of funds so McDonald should have proper cash so that it can
attract the large number of customers. It also creates positive brand image in the market.
 Human resource- It is also most important part because with the help of them, firm can
carry out its operation effectively and smoothly. In marketing department, there are
needed large number of employees who will aid in serving to the customers according to
their requirement (Kennedy and Parsons, 2014). So human resource department has
responsibility to hire best skilled man power who can perform their job according to the
standards.
 Research and development- This unit is very important sector for marketing department
because it helps in identifying the needs or wants of consumers. This section collects
information about its users as well as about competitors polices which aids in designing
4

marketing strategy by which company can get competitive advantages over its rivals.
After conducting research, firm will be able to know about its drawbacks which will help
in getting su8ccess in the market.
 Customer service- McDonald which deals in service sector and provides best quality of
facilities to its consumers so that they can become loyal users towards it and will not
easily switch to any other brand. For knowing about its success in the market, it should
take feedback from the buyers so that it can understand about the limitation of its offers.
After getting information about their services, it should try to improve it which will help
in creating positive perception in the mind of target market.
 Information and communication technology- It also plays an important role in carry
out any marketing related activities because it aids in improving business operations. This
department helps in introducing latest technology by which organisation can easily
communicate with their employees as well as with their clients (Lamb, Hair and
McDaniel, 2011). McDonald uses various types of channel for getting attention from the
consumers such as online marketing in which it uses social sites such as Facebook etc., e-
mailing etc. It assists in running online business smoothly and effectively by which
customers can purchase goods or services easily with the help of internet.
 Sales- It has close link with marketing department. For example- Marketing section
creates awareness about the goods or services of the company and draws the attention of
people so that they will be ready for purchasing merchandise which increases sales of the
company and then this section will get its specified result.
 Production- This unit can not carry out its activities without any support of marketing
department because selling section has main responsibility to identify the requirements of
clients and also creates demand in the society which will help the production unit to
design their products accordingly and in achieving its specified objectives and goals.
 Administration- This unit is closely related to marketing function. It includes top
management who is liable to take decision for the entire organization. It makes strategy
for the company so that it can get success in the market. If top authority changes any
tactic then it will affect the marketing department because accordingly this unit also has
to change their planning so that it can carry out its activities without any disturbance.
5

 Pricing- Marketing department also plays an important role in setting pricing because it
knows how much cost can be afforded by consumers (Malhotra, Birks and Wills, 2013).
It is an important weapon which aids the company in achieving competitive advantages
over its rivals. McDonald can set its products' prices according to the clients so that they
can easily afford it. Organisation can set cost on the basis of competitors, products value
etc.
 Network of distribution- This channel is very helpful in moving goods or services from
manufacturer to consumers. Organisation should select distribution network on the basis
of clients so that they can get goods or services easily and quickly.
 Competitors analysis- Main role of marketing department is to analyse the rivals policy
and their strategy which aids in achieving competitive advantages over its challengers.
TASK 2
P3 Difference in marketing mix of McDonald and TESCO
Marketing mix strategy which is the most important tactic in today competitive
environment because it helps the company in getting desired response from the people regarding
their products or services. It includes various types of elements such as product, price, place,
promotion, people, physical evidence, process that influence the demand of its merchandise and
also aids in achieving competitive advantages over its rivals (Mihart, 2012). In current scenario,
mostly organisations use this tools for getting success in the market. McDonald which deals in
fast food restaurant chain while TESCO deals in retail sector which is the biggest enterprise in
United Kingdom. They both have different marketing strategy which are given below-
Marketing mix McDonald TESCO
Product It provides customize range of
goods or service to its
consumers. It mainly provides
food and beverages products to
its target market so that their
needs or wants can be
satisfied. It serves
Hamburgers, Salads, breakfast,
It provides wide range of
products to its customers such
as clothing, electronics,
financial services etc. and also
provides various choices to its
clients from brand, regional
products, international cuisine
in food etc. Continuously it is
6

desserts etc. Firstly, it is
known for its burgers but at
the time passes, it has
expanded their product line.
expanding their business such
as it has moved towards online
marketing sector and also deals
in grocery delivery services.
Price McDonald's pricing strategy
involves price bundling
combined with psychological
costing in which cost appears
less. For example- GBP .99. In
price bundling, prices of all
products combined together.
Enterprise should set that cost
which can be afford by
consumers.
It tries to adopt less pricing
strategy without compromising
the quality of products so that
it can capture large market
share. It is continuously
working with their suppliers so
that it can make efficient
supply chain which will aid in
reducing prices. It adopts
lower and stable prices and
also cut their promotional
expenses so that it can provide
services at economic price. It
organises unique programmes
which is known as brand
guarantees in which consumers
can get branded items at lower
price. It also uses economy,
psychological, product line and
geographic pricing.
Place It indicates that destination
where customers can get its
products. McDonald's
restaurant are the most
prominent place where
company distributed its offers.
TESCO is adopting wide
distribution network and lots
of retail stores around the
world. It distributes their
goods through online as well
as offline. Online supermarket
7

Generally, it distributes their
goods through restaurants,
Kiosk, mobile application etc.
Place is very important
element in marketing mix
strategy so company should
select that place where end
users can easily reach for
purchasing products.
chain is known by the name of
TESCO direct which is more
moving towards the way of
success. In Offline, it has six
types of stores such as express,
extra, metro, compact, home
plus, superstore. It provides its
services 24 hours in a day.
Promotion It is very important component
because it aids in creating
awareness about its services
and also attract the consumers.
Organisation uses various
types of channel for its
promotion mix such as sales
promotions, advertising, public
relation, direct selling etc.
It has positive brand image in
the market just because of
having lower prices of
services. For doing promotion,
it uses television, promotional
discounts, sponsors charitable
events etc. It has introduced
new promotional activities
which is loyalty card which
can also be known by the name
of Clubcard to customers. In
this, loyal consumers are
rewarded with points or
various discounts. It is very
helpful in attracting large
number of people. It also
promotes their its services
through online.
Process It adopts transparent
manufacturing process that
means consumers can easily
It refers to a procedure by
which consumers will get
happiness. In TESCO,
8

see the whole process. In fact
it allows the clients to evaluate
and judge its hygienic
standards. It adopts various
types of technology for
packaging and distribution.
consumers can get products
easily and can billing quickly.
It has designed their process
according to the requirement
of customer base. It made
online portal by which
customers can get products
easily and quickly. It maintain
competencies of its workers in
term of skills and productivity
so that maximum outcome can
be gained from minimum
inputs in process.
People Its employees have standards
uniform and generally it
focuses on providing best and
prompt services to its
consumers with the help of
their staff. It provides training
to its manpower so that they
can satisfy its consumers needs
and wants. It gives ratings to
the employees according to
their performance which aids
in motivating to them.
It hires best qualified
employees who performs their
job effectively and efficiently.
They contributes in the success
of company because they drive
the strategy into right direction
of success. For motivating the
staff, it organises various
programmes such as Colleague
Privilege card, Save As You
Earn and Buy As You Earn to
gain loyalty of its workers. Its
manpower are highly
competent and well
compensated who contributes
in the success of the company.
Physical evidence It creates positive perception It is a proof which ensures that
9

in the mind of buyers and
displays the speed of service,
quality and hygiene,
transparency in process etc.
McDonald focuses on the
cleanlinesses of its interior
outlet. It makes attractive
exterior outlet so that people
can get attracted towards it. It
also displays brand colours
that shows that its a family
restaurant.
company has provided services
to its consumers. TESCO uses
logos, colours, labels and
equipments as a evidence to its
consumers. Its stores also use
as physical evidence of the
brand. One of the most
successful social marketing
approaches is that it started
environmental friendly
supermarket which aids in
reducing carbon footprint by
half.
TASK 3
P4 Marketing plan of McDonald
There is cut throat competition in the market of United Kingdom so every organisation
needs to change in its process so that it can meet its current and potential requirements of
consumers (Nguyen and Simkin, 2012). Although, McDonald is a well established venture even
then it should make strategy according to the changing environment by which it can attain its
desired result or outcome.
Marketing plan is a business document which describes or outlines the marketing strategy
and tactics. Generally, it is made for short period of time and includes information related to
market such as cost, goals etc. McDonald should prepare this plan after considering all
environmental factors so that it can get success in the market and can carry out its operation
without any disturbance. This strategy should be flexible so that organisation can change it
according to the market situation so that it can attain its specified objectives and goals. This plan
starts from the identification of specific consumers needs and how it will fulfil their requirements
for generating acceptable return. This plan is made after analysing market situation and detailed
10