Marketing Report: Analyzing McDonald's Marketing Strategies and Mix

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This report provides a comprehensive analysis of McDonald's marketing strategies, functions, and marketing mix. It begins with an introduction defining marketing and highlighting its importance for business success, particularly focusing on McDonald's. Task 1 delves into the key roles and responsibilities of the marketing function, including pricing, promotion, product management, sales, financing, distribution, and management information systems. It then explores the roles and responsibilities of marketing in relation to other business departments such as production, R&D, HR, IT, and distribution. Task 2 compares the marketing mix of McDonald's and Burger King, examining product, price, place, promotion, people, process, and physical evidence strategies. The report concludes with a marketing plan for McDonald's. The report highlights how McDonald's adapts its products and strategies to meet consumer demands in different countries. This assignment showcases the application of marketing principles in a real-world business context, providing insights into how McDonald's uses marketing to achieve its business objectives and maintain a competitive edge in the fast-food industry.
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Marketing Essentials
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of marketing function............................................................1
P2 Roles and responsibilities of marketing relate to the business..............................................3
TASK 2............................................................................................................................................5
P3 Comparison of marketing mix...............................................................................................5
TASK 3............................................................................................................................................7
P4 Marketing plan.......................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Marketing refers to the actions, activities of business institutions, developing
communication, integrating, and delivering information to consumers, partners, along with
society at both large and small scale. In other words, promotion of different goods and services
with the help of various media in order to enhances sales and profitability of firm can be known
as Marketing(Ahmed and Rafiq 2013).With the help of this, it has been analysed that
organisations can hit their targets which are related to sale of company. Along with this,
enhancement of business and reputation can be build up in effective manner in front of market
and competitors as well. In this assignment, organisation that has been chosen to analyse the
essentials of marketing i.e. McDonald's which is one of famous food firm which is doing
business in almost every country at current time. Company was found in the year of 1940 by
Richard and Maurice McDonald. Report will include marketing functions, roles and
responsibilities of marketing. Away with this, assessment is going to show marketing mix and
plan as well.
TASK 1
P1 Key roles and responsibilities of marketing function
In current moment, every single business firm's aim is to maximise its productivity and
profitability. In order to do this, it has been analysed that marketing department of an
organisation plays an epic role where promotional activities of products and services, various
strategies of developing reputation among customers and other actions are some major parts of
this subsection of business firm. Along with this, analysation of market is also being done by this
department so that effective determinations can be made in order to develop brand image of
business organisations (Garrigos-Simon, Lapiedra Alcami and Barbera Ribera, 2012). Marketing
activities may directly put positive impact on quality of products along with image of
organisation. In present report, McDonald's marketing function consist with some roles and
responsibilities and these are given beneath:
Pricing: McDonald's pricing strategy can only be developed in an appropriate manner of
products and services if management is carrying updated information of all the marketing trends,
policies that has been made by government along with strategies that has been adopted by rivals.
Through this, it has been located that company can grab good position at marketplace if they will
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analyse these things in a proper way. Delivering products like cheese burgers, coke, lava cakes
with minimal cost may aid them in developing a healthy relation customers.
Promotion: This sort of function of marketing plays an important role when it comes to
developing reputation at marketplace of United Kingdom. Promotional activities is being mostly
done by business firms in order to enhancing sales of products and services. On the other hand,
promotion can be done with the help of various media components like in newspaper, Television,
social sites and many other channels. In modern world, McDonald's uses social media most of
the time to promote its products because it is cheaper then others in terms of expenses and do
helps in grabbing attention of consumers high in numbers.
Product management: Another key role of marketing department in context of business
expansion. Through this, it has been examined that management of products plays an essential
role where it is necessary to look into different aspects like supply of products in different areas
as per the demand aid in many ways (Huotari and Hamari, 2012). On the other hand, it has been
located that if McDonald's marketing department can control this approach in an effective
manner then it is may be possible that firm may grab good position at marketplace of United
Kingdom and in other countries as well in an accurate way.
Sales: Each client needs to show signs of improvement administrations from organization
so it is vital for deals office to decide showcase patterns and request to serve quality
administrations. As deals group is a piece of advertising as it assume fundamental part in
inspiring and also affecting to purchase Mcdonald's items to achieve gainfulness level at
commercial centre. Hence, showcasing chief is in charge of killing issues and questions of clients
by viably speak with them. By hence organization effectively make their aggressive place in
commercial centre.
Financing: For playing out any sort of exercises, each office required satisfactory store
to work every one of the exercises in viable way. In this manner administrator of promoting
division viably utilize reserves and furthermore make spending plan to lessen the issues inside
executing advertising exercises. With the assistance of this they effectively set their general
arrangement of apportioning legitimate assets to showcasing division. This will specifically
contribute in improving general execution of the organization at commercial centre and in the
meantime additionally catch bigger piece of the overall industry for it contenders.
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Distribution: In showcase different sources are accessible through which organization
effortlessly convey their quality items and administrations by utilizing viable channel of
dissemination (Kapferer, 2017). As it's anything but a simple undertaking for organization to
viably circulate their administrations so they need to utilize quality crude material to make high
caliber of items. In this organization offer their items and administrations at reasonable cost as
they accomplish clients consideration. This will specifically contribute in accomplishing upper
hand at commercial centre.
Management information system (MIS): It has been analysed that this sort of framework
helps in social event, breaking down data according to standard premise. With the assistance of
this advertising chief effortlessly take right choice which contribute in enhancing general
execution of the organization at showcase. For the most part, it is consider as an orderly
procedure through which firm effortlessly accomplish focused edge at advertise.
Henceforth, above discussed marketing functions plays some essential roles when it
comes to hit their targets in much effective and in appropriate sense. McDonald's products have
been made according to taste of consumers in different countries. Operational department gets
information from marketing section and this may aid in making modifications in food items.
P2 Roles and responsibilities of marketing relate to the business
Marketing department of business firms in today's business environment plays an
important role when it comes to enhance both sales and goodwill at international or domestic
marketplace. On the other hand, it is being located that business organisations needs to keep on
comprehend clients needs and needs and give them same which may leads in catching clients eye
and this action may lead them in developing healthy relation when it comes to hit their targets.
Promoting alludes to exercises of the organization which incorporates purchasing and offering of
the items and administrations. Part of the advertising worker is to coordinate the item with the
clients needs and qualities (Laczniak and Murphy, 2012).They incorporate trademarks and
snappy slogan to pull in focused clients or gathering of people. Alongside this, advertising is a
wide idea which offer help to business association and its area of expertise to achieve their
objective clients by offering quality administrations according to their requirements and needs.
As there are some significant parts and duties of promoting which is relate with the association.
This will help in accomplishing set objectives and goals in proper time period. Interconnections
in between departments with marketing are given beneath:
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Marketing and production department: Interconnection in between these two
departments plays a crucial role because if these two were not having good relations then it is
may be possible that firm may not develop its products according to requirements of customers.
McDonald's production department rely on marketing because this subsection works with
consumers where information is being gathered by them. Collected data then sent to operations
sections and with this appropriate decisions are taken in order to grab more attention of
customers.
Research and development with marketing division: It is an imperative division of
McDonald's in which R&D embrace a viable research to comprehend clients needs. As taste and
inclinations of buyers are quickly change with the goal that administrator ought to give different
items according to their necessities and needs so as to accomplish their fulfilment level. What's
more of this, it is real duty of advertising group is to convey pertinent data about the clients and
market drifts with a specific end goal to keep up their positive image picture at commercial
center. With the assistance of this current McDonald's effortlessly catch clients eye by conveying
quality items to target clients for satisfying their needs. It specifically contribute in expanding
general execution of the organization at showcase as contrast with its adversaries.
Human resource with marketing department: McDonald's mostly recruits candidates
that carries good attitude and appropriate communication skills. Vision of McDonald's is clear
among HR department but this department mostly does not know about technicality of vacant
seats. It is responsibility of Marketing department to deliver the information like need of
qualities, capabilities that a candidate should have so that better results can get draw in bear
future. Recruited new employee who is having good communication skills will directly attract
consumers and through this long term relationships with them can be maintained.
IT department with marketing: Technology and market these are two component on
which business of many organisations are relying. If interconnection among these will not be
there then it is may be possible that firms may reduce its image in front of society. This will take
firm to decrease in sales and in revenue as well at the same time. As human nature is today's
world changes from time to time. Therefore, marketing department which stay connected to
mindsets of consumers can help IT department of McDonald's to develop applications according
to requirements or needs of customers.
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Distribution with marketing division: Another interconnection in two different
subsection of McDonald's plays vital role in generating higher revenues. Here, it has been
analysed that if products and services are getting developed and if they are reaching to correct
customers, company will directly lead to hit their targets. But, it has been analysed that mostly
distribution channels of this firm mostly do not carry information that where demand of products
are more. Here, information is being gathered by marketing department and then collected
information gets sent to McDonald's distribution channels. Through this, organisation can grab
good position at marketplace in short period of time.
TASK 2
P3 Comparison of marketing mix
Marketing mix can be considered as an essential tool which is being used by business
firms when it comes to develop competitive advantages. With the help of this, it has been
examined that organisation can enhance its sales along with specific long and short term goals
can get attained right on time (Baser and Buchbauer, 2015). Away from this, it has been located
that there are various competitors are doing business in same field which is giving good rivalry
to McDonald's like Burger King. In order to satisfy customers more than rivals it is mandatory
for McDonald's to develop ample number of strategies through which sustainability of business
can get stronger. On the other hand, in order to expand business at international level in a smooth
manner. This sort of tool can be taken under in use by McDonald's. Along with this, Marketing
mix is filled with some factors as well and these are: products, price, place, promotion, people,
process and physical evidence. These elements of marketing element plays crucial role where
market value of organisation can be increased. In present report, comparison of marketing mix of
two famous companies that are dealing in food sector (McDonald's and Burger King) is done
beneath:
Marketing-mix Factors Mc Donald Burger King
Product McDonald is one of a largest
fast food restaurant in the
world. It offers a wide range of
food products like burgers,
sandwiches, deserts,
This food manufacturing firm
focuses more on completing
demand of customers on time.
It has also offered a wide
range of products like French
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confectionery drinks and more.
All these products have
amazing taste and always
available in fresh quantity. The
main motive of this firm is to
provide high nutritional value
of items so that health of
people cannot be affected in
negative manner. Therefore, it
focuses more on hygiene
condition of kitchen area as
well as use separate
equipments for cooking
purpose.
fries, desserts, milk shakes,
soft drinks and more. Among
these, main product of this
company is burger which is
available on different kinds of
varieties. It also concerns on
providing effective quality of
eatable items and always
serves in fresh manner (Baker,
2016).
Price It serves eatables on different
range of pricing techniques.
Managers of this firm use
various techniques like value
pricing, going rate, price
discrimination, cost plus
pricing and more which help in
providing eatables at a
competitive manner (Beck,
and Reichert, 2012). As per
different factor, its restaurants
have set prices as per demand
of customers.
In terms of pricing strategies,
Burger King has set prices of
commodities in two manner
i.e. Market-oriented and
Bundle Pricing Strategies. In
this manner, by market-
oriented they used to set price
rates as per condition of a
marketplace and demand of
customers. While, bundle
pricing strategy is used to offer
products on combo according
to preference of customers.
Place This firm has operated
business in around 119
countries having near about
Burger King is also expanded
its business in various
countries i.e. near about
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36,258 restaurants. It has
expanded business in rapid
manner and currently launches
some branches in rural and
urban areas also where high
population is exists.
79 countries in all over the
world. It has near about 13000
outlets in most competitive
area.
Promotion This firm uses television,
social media, internet,
newspapers and other to aware
people about its offers and
discounts (Babin and
Zikmund, 2015). It also use
various techniques for sales
promotion like discount
coupons, freebies on specific
products, stickers with cup of
coffee and more. It will help in
attracting more customers
towards services.
It also uses different tactics for
promoting products or services
of company like advertising
campaign, sales promotional
activities, personal selling and
public relations.
TASK 3
P4 Marketing plan
It is comprehensive document that outlines business marketing and advertising efforts for
future. Marketing plan is helpful in doing all market related activities or operations in better
manner (Cooper, 2012). Through this, McDonald's can achieve its marketing objectives with in
given time period.
Mission: Main mission of McDonald's firm is to make place favourite and way to drink
and eat.
Vision: Its vision is to provide better quick services to consumers to give them better
experience, so that they can smile.
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Objectives: Its main objective is to attract large number of consumers by providing them
healthier and hygienic fast food. This restaurant developed international strategy that focus on
developing extraordinary experience to consumers.
Segmentation: Under this, segmentation makes according to age, region, density, income
level of customer etc.
Targeting: The target of McDonald's firm all world. This firm expand its business
through targeting particular franchisees in specific nation. Its main target is children and
families.
Positioning: This firm placed the considerable emphasis on increasing its brand
positioning by sponsorship of sports and events.
Marketing mix of McDonald's: Marketing mix is a best technique used to evaluate effectiveness
of strategies of a company (Amirkhanpour, Vrontis and Thrassou, 2014). It includes 4 P's that
are Product, Place, Price and Promotion. It helps managers in executing a marketing plan in an
efficient manner.
SWOT Analysis of McDonald's
Strengths Weaknesses
The product offering of McDonald's is
strong and it has developed income by
notching, recession strong enhances in
similar store sales.
It has strong international brand in all
over the world.
Negative publicity impact on business
of McDonald's.
The employee turnover is high.
There is problem arise related to the
health because people are more
conscious towards their health and eat
to eat the healthy food (Du Plessis,
2015).
Opportunities Threats
It has better opportunity make
development in sector of fast food
restaurant.
Minimum cost menu preferred through
more consumers.
There is a threat about public health
related crisis.
Competition is high in the fast food
sector.
The main threat to McDonald company
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about environmental problem.
Marketing budget- It is an estimated cost amount that will necessary to promote services and
goods. Generally, it is a main part of marketing plan of process of marketing. It is developed to
estimate costs which are requires for developing business.
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 56000 13600 13200 21000 18000
Investment 21500 14900 17000 14400
Total 56000 35100 28100 38000 32400
Marketing
expenditures
Advertisement 9700 6800 6300 6100 6300
Sales promotion 2200 2200 4400 3200 8400
Direct marketing 7100 6200 2200 7100 2200
Total 19000 16200 13900 54400 16900
Available balance 75000 51300 42000 20000 49300
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