Marketing Analysis: McDonald's Strategies and Customer Satisfaction

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This report provides a comprehensive analysis of McDonald's marketing strategies. It begins with an introduction to marketing and its key functions, followed by an examination of the roles and duties of a marketing department, both in general and within the context of McDonald's. The report then delves into McDonald's marketing mix, exploring the elements used to satisfy customer needs and achieve business objectives. Furthermore, the report outlines a marketing plan for McDonald's, discussing various techniques and approaches used to gain a competitive advantage in the market. The report covers essential aspects of marketing, including marketing information management, product and service management, financing, pricing, promotion, distribution, and selling. The report also examines the various functions within a large organization like McDonald's, such as administration, customer service, distribution, finance, human resources, and ICT, and how these functions support the overall marketing efforts. The report concludes with a summary of the key findings and insights regarding McDonald's marketing strategies.
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Marketing Essentials
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and duties of marketing................................................................................................1
P2 Duties and roles in context with organisation........................................................................4
TASK 2............................................................................................................................................7
P3 Marketing mix of McDonald's...............................................................................................7
TASK 3............................................................................................................................................9
P4 Marketing plan of McDonald's..............................................................................................9
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14
.......................................................................................................................................................15
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INTRODUCTION
Marketing is defined as the process which is being used for dealing, communicating,
delivering and inventing offers which may be valuable for society, partners and consumers. In
distinct way, it can be termed as the process through which services and goods make
transformation of idea to consumer. Marketing is the key part of any organisation which is used
for making advertisements and promotions of services and goods which a company is providing
to their customers (Wirtz, 2012). This report is based on the topic of marketing strategy on the
case study of McDonald's, which is a fast restaurant chain founded by Richard and Maurice
McDonald in California. Marketing strategy mentioned company will be analysed in this report
which is used by them to satisfy wants of customers.
The aim of the project is to determine how organisation make use of different techniques
for marketing in business related to satisfaction of customer's demand and needs. Duties as well
as responsibilities of marketing department will be discussed here in general and also in context
with the organisation. Explanation of marketing-mix which is used by an organisation will also
be discussed for proper marketing planning. These things assist achieving goals and objectives of
business in effective manner.
TASK 1
P1 Roles and duties of marketing
There are seven function of marketing are as follows: -
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Marketing information management: - Its initial step, firstly research about what
actually consumer wants and who are company's targeted clients. Information is going to be
collect as according to the recent trends and purchasing habit of the customers. Social sites and
internet are also beneficial for collecting information (Rother, 2010). Generally, customers
review and talk about their tastes and likes openly in review column and it will be beneficial too
to collect data. To review and observe environment and customer's wants and needs, it will help
in making business strategies and action plans. To collect information about the market trends its
basic and first step. If the clients are demanding for something else too, then company also think
about that and include in their plan for making that kind of product in near future for clients.
Product and service management: - In this all the product changing, deals and updating
all thing are included in this, all things are done as according to the demand of the consumer, and
through the data which company collect through market information management. Product are
made for clients and should make according to that, so through this raise company's sale and
make profit. Packaging, style, colour all are included in this. Packaging must be take about the
company, because product meant to be presentable and attractive in everything. It has to be
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Source 1: Marketing functions, 2017
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unique in sense so it will automatically intrigue customers. For example: - Peps i's new bottle is
totally change as in colour, shape and size after that it also affect in terms of sales at all.
Financing: - Financing is divided into two parts. In First one, it has to work together
with marketing department. A successful strategy leads to help in get back revenue, in initial part
they have to make successful planning for booming product launch and great hit of product. On
other hand company make sue to reach at every customer where the clients want them in sort, to
their targeted customers. Financing Dealing with customers by make them available some
alternative path to get their products. This can be done through offering them loans, leasing,
credit options etc. it will create a bond between company and them and they will be loyal clients
for company (Raj, Walters and Rashid, 2012).
Pricing: - Its very challenging for the company to decide the price of the product,
because they will be in complicated situation like whether consumer will buy their product or
not. In marketing you have to make sure that you earn profit, as well as increase in sales too by
balancing both of terms you have to do set for pricing. There are many brands and companies in
competition and your brand has to be make sure about set lower price, in possible way and
obtaining great benefit too. Through this company can offer them many unique schemes and
discounts that other brands don't do it will attract more often.
Promotion: - Advertising is a key of whole the process. If your product is nice, consist of
good quality. Have affordable price tags then it will go in all vein, until you promote your
product. Through the advertising people get to know about the product and there is various way
to do promotion by using various media. Promote product where are large number of public are
involving. Like company can use billboards at roadside, kiosk, posters, and social media is one
of the great way to reach large number of audience at once. Promotion offer awareness in
between the public and through advertising it makes customers to buy their product (Puddle,
2015).
Distribution: - In distribution process refers to make your product available there, where
customer demands to be and where the target consumer is. It’s important to make products
equally distributed. Company can sell products physically as well as in online terms too,
company should involve online thing necessarily because online is trending now days. It doesn't
consider the boundaries, company has to make strategies for distribution too so it will reach in ll
ways equally and after research it is also needed to analyse that if in all locations company's
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brand is available or not. If not, then immediately make products available there. For example: -
If any shoe company wants to distribute product apart from physically arrangement the they have
to deal will amazon, Macy, etc. online shopping websites.
Selling: - Selling is indirect response to the company if they are liking their product or
not. Selling is major change and it will depend on customer, If the consumer like their product
then it will increase in demand and sales obviously and if they don’t like the product that much
then there will be less decrease in sales (Pike, 2015). Sales and marketing is inter liked together
because selling can be happening only if all the things will follow accurately which was making
in marketing to fulfil the needs of consumer. It’s also called as a complementary function which
is given by consumers. For example: - If any person goes to mall for shopping shirt, then it’s all
upon the sales person who gently assist him what shape, colour, kind will suit on him.
Conduct market information: This is one of the key function of marketing where a company
needs to understand changing demand of its customer on regular basis. In the context of
McDonald, marketing manager is required to gather various information through market
research, feedback or any other approach in order to gain competitive advantage.
Developing marketing strategies: There are various strategies which is a part of marketing
function. All tactics and approaches developed by the department so that they can gain
competitive advantage in the market. For instance, McDonald operating their business in UK, but
due to increase in competition their performance going down. Therefore, they required to design
attractive approach which leads to meet their short and long term target in an effective manner.
Promotion: There are various promotional tools and approaches such as advertising, direct
selling etc. which can be used by the cited firm. For example, McDonald wants to launch new
product. This required different communication tools- social media, digital media, print media
and so on. can be used by them.
M1
When business owner willing to sell their product to make money, its need to be trade
with services. Marketing is important because its only way to reach to customers directly. If any
company is selling nice, good quality product without marketing its all waste, because their
people needs to know about product to buy them. It’s not just a promotion thing it’s also an
understanding what people actually wants.
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P2 Duties and roles in context with organisation
Large organisations like McDonald, in that it’s easy to identify the separate functions of
different departments. Each task is allotted to each department. Some of business organisations
of McDonald are as follows: -
Administration function: - This is a support system of whole organisation. They are one
who carried out task for all over the organisations and monitoring the budget and interviewing
them to rest of the employees of their respected departments. In this administration's routine
incudes faxes, filing documents, importing and exporting mails many mores. On other hand it
also need of flexibility, creativity, arranging important events and travels, meetings with guest
from country and foreign countries and many more (Peter and Donnelly, 2011). Wrongly
scheduled meeting, order, poorly written letters etc. will become loss to company and end will
lose one permanent customer.
Customer function: - McDonald look after the customers who have some enquiry,
complainants, problem whatever and they will try to resolve the matter. Nowadays, consumer is
very smart and educated they expectations are getting quite high. Consumer expected to be
handled in polite and some great intelligent response. Generally, McDonald classified different
departments for different works, they have very smartly trained staff for customer services they
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professionally and positively handled problems. It doesn't mean that other department member
denies customer's needs and complains they will also assist people.
Distribution function: - Distribution process, in this they have to ensure that order will
be reach at right time and right place in right state. Sometime during the online delivery the
company has some good vehicle services through which the order will reach at the destination
properly. This process should have done properly and goo with the vehicle in that way through
that the order will reach on the time to the consumer and will try to not disappoint consumer
(Ormrod, 2014).
Finance function: - Its most challenging and important function in whole firm of
McDonald. Finance department record all the things related to money whatever they earn they
invest in that way so it will resultant as a more beneficial and profitable. Critical decisions are
not making immediately; it needs to take time because for the decision making the financial team
needs accurate information because they are based on exact information. According to that they
take decision in near future. They basically monitor sales, profit departmental budget and aster
that they make profit and loss statement and balance sheet according to that annually so it will
help them to find out profit and loss.
Human resources(HR): - Human resources seek for good employees, who will do work
sincerely and efficiently who are committed to their aims and objectives. HR is only one who
recruit the employees and make sure that each vacancy is filled by deserving candidate for their
company. This process of recruitment is very expensive and time consuming as well, because
hiring a wrong employee will be costly a bit and will leads to problem for the firm and for that
individual both. HR aim is to be have good, efficient, hardworking and those who are loyal with
company too (Nguyen and Simkin, 2012).
ICT function: - Installing updated and new software, additional hardware system,
maintaining servers, scanners, printers all are the part of ICT. McDonald has ICT department
who engage in computer supplies, purchase, issue, they make sure that all system should be
compatible, good and updated with the current trend and scenario. Every organisation need some
employees who understand these. This is crucial because there are number of tasks which is
carried on computer and all the data too stored in system. This department also responsible for
rest of security system, which is protected by hackers and viruses and ensure that backup system
to be there to restore crucial data.
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Marketing function: - This function relates to identifying and meet up, satisfy the needs
of customers. McDonald consider is one of important function. They generally identify and
observe market place and then make plans and strategies according to the recent trends, demands
of the customers and what customers re expecting and looking in products all things are includes
in marketing function. They trained staff according to that and pre pare all the plans through
which sales of company will be increase and addition in profit too (Mihart, 2012).
Sales function: - Sales is response of consumer from company get from employees. It
will be waste and pointless about having great product and services and no consumer will buy
them. Company set their targets and objectives and they have to meet them, so they make
strategies for them. Sales department is interlinked to marketing and promotional department. If
product is nice and quality wise good and price will be reasonable. Still if there will be no sales
of that product and very people know about that, then it will be not so proper strategies and lack
of good promotion lie there.
Production function: - There is a different department of production in McDonald, they
are responsible of the quality and ingredient of that particular product. Quality is very
considerable and they are concern about hat too. They make sure that at proper and in efficient
time they complete order of consumer. They basically heck the quality and also examine them.
Research and development function: - These are concerned with the improvisation of
new product as well as existing product (Malhotra, Birks and Wills, 2013). This department
includes designing in creative way. Which work on the customer's feedback and develop product
as according to them. They look for new and creative ideas and through which they work on that.
And time by time launch new product of McDonald.
M2
Main aim of these departmental activity leads to do work efficiently and effectively. In
this marketing and sales are consist in this and achieve these goals by time and in other hand,
human resource are also plays effective role like in managing staff and motivating them to do
work efficiently (Pike, 2015). These thing and finance needs to be monitored and supported so
they would be keep employees and others to be focused.
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TASK 2
P3 Marketing mix of McDonald's
7Ps of marketing mix consist of place, product, price, promotion, people, physical
evidence, process.
Product: - McDonald is one of the famous multinational food chain it has very wide
range of fast food products. They offer varieties of product and time to time they launch new
products. Although McDonald initially start with burgers, French fries and soft drinks after that
they wide their product range and in every quarter of the launch new one with offer meals
(Lamb, Hair and McDaniel, 2011).
Place: - There are approx. 36,258 restaurants in across 119 countries. Their expansion
strategy is quite good through this now they cover most of the countries. Their main aim is to
establish McDonald in urban as well as in rural areas too. They look for the groovy places where
people can easily reach and that's how they provide convenience.
Price: - Their price strategy is to charge for the product too but as well charge for
services too this is how they maintain their price. They offer fast food and snacks which gives
pleasure to customer and they keep balancing their price which customer find that affordable.
Promotion: - promotion is how McDonald communicates with customers and how they
depict their organisation in front of them. Basically promotion set up Image and build image in
front of public that should be good and effective.
Process: - This is activity which undertakes to deliver goods and services to the
consumer with in right time. McDonald is a giant food chain in international market. They have
to keep in mind that all employees should be on same page and maintain homogeneity among
them. Engage in process of preparation, packing and then serve them apart from this they have to
maintain they legal and cultural needs and norms too. There is a law according to that company
has to provide healthy product to the consumer and through that should not have health issues.
They are all on same page and this leads to homogeneity through which they make all efforts to
gratify customer needs (Koontz, 2010).
People: - Organisation is made by the employees and in each stage and step employees
are the one who is working and manage whole concept, process, of organisation. They allot
delegates to them, they compel whatever task made by top management and that is
implemented by employees. To achieve all the objectives management is big support behind that.
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Physical evidence: - McDonald's physical evidence is very good. They portray very
reputed, appearance and ambience etc. McDonald it’s not only give impression as well it
portrays appearance which is very good for business internationally. Staff members are well
trained and they listen complaints and queries and solve them too. Their location is very
convenient and fun lovely aroma and environment in the restaurant of McDonald.
7Ps McDonald Burger king
Product They offer variety of products
including, burgers, hamburgers,
French fries, soft drinks, chicken,
fish, ice cream and many more and
time to time they offer new products
to customers
They offer fast food which consist of
almost every fast food. They think
themselves as a competitor. They are
selling coffee, cheese, bacon, mustard and
many more they don't set limits they
almost focus on every product (Judge and
Robbins, 2015).
place It has 36,285 restaurants in 119
countries and its aim to open in urban
as well as rural areas too.
They operate 11,900 restaurants in all
countries. Its keep changing their decor.
price It has affordable price apart from the
cost, they charge for services too.
They keep sell new premium burgers and
charge less amount than McDonald in
some of varieties.
promotion They keep promoting their product by
the most famous tag line McDonald I
am loving it.
They offer winning contest games, online
promotions and by physically to they
promote every new product of menu.
people They consist of manageable staff
which work efficiently to achieve
their objective.
They charge for the next best move and
seeks strength from urban areas. they are
more focused on expanding food chain
process They maintain homogeneity and work
together while providing and satisfy
customer needs (Hagan, 2011).
Their focus is on segment of customers
which they spend most of the money in
restaurants. They provide quality.
Physical They portray very clean and good They invest in equipment’s, seating,
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evidence reputation among the public they has
ambience which is fun and lovely.
signage, décor, land and good building
they generally adapt primary locations.
M3
Various tactics and strategies of business can be implemented in an organisation with the
help of marketing mix, which includes product, price, place, promotion, people, process and
physical evidence. These factors help in proper achievement of objectives and goals which are in
relation with marketing of services and products. McDonald can be used marketing mix for their
products and services in order to increase its effectiveness in the market which is very
significant.
TASK 3
P4 Marketing plan of McDonald's
Introduction
McDonald's is one of the largest chain of food operating in a world with 30,000 or more
outlets in more than 120 countries. The company make their establishment in the year 1954.
Main products of the company are like French fries, burgers etc.
Mission
The major mission of an organisation is to give good and effective quality of products
and services with clean and favourite place for eating.
Vision
Vision of a company is to be very fast in delivering different services to their customers.
SWOT of McDonald's
Strengths Weaknesses
They are having leading position in
foreign and international market.
Presence in entire world and large
impact on competitors.
Scale economies
Increased revenues
Situation of saturation in market
Company is slow in providing
innovative products.
Similar products in each and every
area.
Opportunities Threats
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