Marketing Strategies and Analysis: A Report on McDonald's Business

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This report provides a detailed analysis of McDonald's marketing strategies, encompassing various aspects such as marketing concepts, current and future trends, and the different stages of the marketing process. It delves into the roles and responsibilities of a marketing manager within the organization, specifically in the context of McDonald's, and explores the interrelationships and influence of marketing with other functional units like service, production, finance, human resources, and IT. Furthermore, the report assesses the value and importance of marketing in McDonald's, examining its marketing mix elements and comparing it with another organization, Travelodge. It concludes with a proposed marketing plan for McDonald's, outlining key strategies and tactics to achieve its business objectives. The report highlights McDonald's global presence, product offerings, and its approach to market segmentation, as well as the importance of marketing information systems and market audits.
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MARKETING ESSENTIALS
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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1 Marketing concepts and current and future trends..............................................................1
2 Different marketing process................................................................................................2
3 Roles and responsibilities of marketing manager in the context of the organisation..........2
4. Inter relationship and influence of marketing with other functional units.......................3
5. Value and importance of marketing In the context of McDonald's....................................5
6 Compare the way in which different organisations apply marketing mix to marketing
planning process to achieve business objectives....................................................................5
7.Marketing plan for McDonald's..........................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11
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INTRODUCTION
Marketing is a tool which is essential to increase productivity and profits of overall
business. Organisation performs various functions like product planning, marketing, etc. in order
to create positive brand image. This project discusses about the McDonald's key roles and
responsibilities of the marketing functions in business. McDonald's is running its business in
more than 100 countries with 36000 outlets. Further this project discusses about the interrelates
with the other organisations functions. And comparison of the marketing mix of McDonald's
with other organisations and different tactics of the McDonald's to achieve the objectives of the
company. Marketing plan of the McDonald's.
MAIN BODY
1 Marketing concepts and current and future trends
1 Production concept- consumers will buy only that product that are easily available in
market and affordable, this is one of the oldest marketing concept. In some situations productions
concept is useful philosophy
2 Product concept- The product concept consider that consumer will hold that product
that offer the most quality, performance and unique features.
3 selling concept- this concept relate tat consumer will not buy enough product unless it
undertakes the large scale selling and promotion efforts
4 Marketing concept- to achieve the organisational goals it is important to understand
the customers needs ad wants of target customers and delivering the desired satisfactions better
than other rivals.
5 social marketing concept- this concept holds the well being of the consumer and
society by delivering the value.
Trends in marketing
Relationship marketing- this concept emphasis on the customer satisfactions and
engage them to long term in the business. This strategy has changed from the previous
communications methods now its is use as the promotional methods. Marketing is related to the
exchanging of money in term of transaction of the goods and services. This trends is widely
grown from the advancement of technology. Complaints are accepted from the direct
communication and later that will correct.
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Industrial marketing- This marketing trends is use where a business sell its product to
other company to resell it in future . Its help to improve and create a complex goods and sell in
future. Technology plays a major role to of these marketing trends. Other reason is reinvent and
drawing boards themselves by new invented product. Flexibility speed, quality and innovation
help the company to survive in the market. Alliances and mergers also play an important role for
setup of industry. Main concern of companies is transaction, inventing new ideas and skills
shying from market.
2 Different marketing process
There is 4 steps of marketing process that are below-
(1) Situation analysis- situation analysis relate to identifying the preferences, needs and
wants of the customer which are never before exploited. Both internal and external
environment should be analyze before the satisfy these unique needs
(2) marketing strategy- after identify the best opportunity a strategic plan can possible to
developed marekting strategies have some factors that are segmentation, Targeting,
Positioning,.
(3) Marketing mix decisions-Good decision are made from the product development, pricing
decisions, distributions contact promotional contracts etc.
(4) implementation and control-after launching of the product the results of the efforts should
be monitored closely. it's helps to finding the in convenience factorof the goods and
service.
3 Roles and responsibilities of marketing manager in the context of the organisation
Brief description of McDonald's
McDonald's is one of the leading restaurant chain in the world. The company provide
various range of the food and beverage items to the consumer. McDonald's have many food
outlets around the globe. McDonald's known for the its burger and others food and beverage.
McDonald's mostly established there outlets in mall, market and on highways.
Roles and responsibilities of marketing manager in McDonald's
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Role and Responsibilities Marketing manager execute in McDonald's
Researcher Marketing manager helps the Mcdonald's to do a market research
is helpful for the company to know about the customers needs and
wants. Marketing research help to achieve the business objectives
and goals. It supports the organisations to gain the competitive
advantage.
Plan developer Marketing functions guide the Mcdonald's to create the
developing plans. It helps to the management of the Mcdonald's to
analyse and forecast the market risk. It will make the organisations
in identifying the target market for the future needs and
demands(Davis, 2017. ).
Relationship maker This marketing functions help the Mcdonald's to make the good
relationship with customers by providing them satisfied product
and service. Its help the McDonald's to create the brand loyalty
and brand awareness.
Brand promoter Marketing functions help the McDonald's to promote their new
food beverage and service in market. A wide range of consumer
attract from this strategy and help to improve the quality of the
service and the product. As much customer will aware from the
product of Mcdonald's it helps them to increase in their revenue.
4. Inter relationship and influence of marketing with other functional units.
Marketing and service- Marketing and service interlinked with each other. Main
purpose of McDonald's is to sell food and beverage product to the customer. Marketing help to
aware about the product then service department need to provide the products to the final
consumer. Both department's relationship are important for the McDonald's to generate the
revenue for the company. Service department have direct connection to the customer they are the
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responsible for the look after ok consumer. Marketing has to collaborate with the service team.
Production function can not be completed without the help of marketing and service.
Marketing and production department- Production department is responsible to
produce the products according to the needs and demand. Marketing department analyse the
Need and demand of the people. Then they give the instructions to the production department to
what they have to produce. After getting the instructions from the marketing team production
team is responsible to provide that products which are meet with needs and demands of the
customers. Marketing team a has duty to ensure provide the correct information of the products
to production team. Then they have to produce the same product which meet the needs of
customers.
Marketing and Finance department- finance department is very important department of the
organisations every business operates within its financial capabilities. Finance manager allot the
budget to different department according to their needs and activities. Finance department is
responsible to look on the inflow and out flow of the cash. Finance department have to provide
the fund to marketing for their working activity. Marketing have to get the fund for research,
promotion and distribution. For the increase the sales volume and capture the market marketing
has to implement different policies. For any activity which is requires for the marketing that all
the need the financial support then only its possible to conduct thus, that is show the relationship
of the marketing and finance(Datta, Ailawadi and van Heerde 2017. ).
Human resource department- human resource department is responsible to select the capable
candidate to the company who can perform their task with effectively and efficiency. Before
develop the new product company needs to conduct the research for that they need the capable
and skilled employees. There is many technical process in the research which needs the
knowledgeable and skilled people.
Increasing in revenue is the main concern of the marketing team. sales team makes it possible
with their efforts. HRM department responsible for the recruitment and training of the employee.
They provide the efficient work force to the marketing department so they can mange the activity
and task of the department. In other words when marketing team has need of the worker of
specific posts then he informs the human resource department to hire the employees and fill the
requirements.
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Marketing and IT- information technology deal with the computer software, information
system, computer hardware and programmes language.
Marketing is department which know the importance of the technology. Technology help the
marketing team to get the information of the market from different sources. There are many
technical tools which are using by the marketing team to perform their task. IT team help the
marketing team by provide the information of using that like how to use it, what are the process
of it, how to collect and store information. There are many other process when both are need
each other. It shows the relation of marketing with other departments (McDONALD, 2016 ).
5. Value and importance of marketing In the context of McDonald's
Marketing has to deal with many factors of managing and controlling process of the product
development.
Formulation of marketing strategy – An essential part of advertisement is that organisations is
to design products and procedures according to the objectives. To achieve the competitive
advantage, organisations have to create the right marketing plan. McDonald's has main objective
to maximise the profit and provide the quality service to the customer . They design strategy to
accomplish the same.
Management of marketing information system- MIS deals with many different factors like
interaction with the customers in well manner there are different types of equipment which helps
to improve the marketing policies.
Market segmentation- Market segmentation relate to divide the market into different parts
according to the characteristics. These segments can be divide in to the same taste and demand
all the segments are different from each. McDonald's also divide their product according to the
segment.
Conducting market audit- Strengths and weakness can be analysed by the market audit.
Mcdonald's ensure with the audit that all the process and activity are implemented and follow in
effective manner or not.
6 Compare the way in which different organisations apply marketing mix to marketing planning
process to achieve business objectives.
To achieve the goals and objective of business marketing mix is the tool and technique which
can be used. This help the business to get more revenue and profit and helps to enhance the value
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of the product and increase the demand of the product. Here we will do the marketing mix of the
McDonald's and Travelodge.
Basis McDonald's Travelodge
Product Mcdonald's has the wide range of the food
and beverage products like Hamburgers,
cheese burgers, French fries, egg Mc
muffin, happy meal, soft drink, coffee
shakes, salads etc. these are the some
products which offered by the Mcdonald's to
its customers. Mcdonald's is the leading fast
food restaurant chain in the world. There are
some food and beverage products which are
not removed after the initial change. It
depend on the demand of that product.
people like the product most Mcdonald's
remain that in theirmenu. Mcdonald's
expanding globally so company has to
produce that product which can meet with
taste of that countries people. This is the
product strategy of Mcdonald's which help
the company to grow.
Travel lodge is providing the
accommodation and food and beverage
service to its customer the quality of
food and beverage is very high. There
are many other products and services
which provide by the travel-lodge like
meeting rooms, banquet halls, business
centres, Spa and saloon facilities, Gym
facility, swimming pools. Travelodge
analyse the demand of the customer and
then apply it to its products.
Price Mcdonald's is expanding on the
international level. So company has
different strategy for the different countries
its depend on the economic condition of the
countries and income of the people.
Mostly Mcdonald's use two types of pricing
strategy(1) psychological pricing strategy- it
relates to the appearance of the price look
more affordable like using the 99.99 etc.(2)
Price of the Travelodge product depend
on the price of the competitor according
to that they set their price its give them
the competitive advantage. Travelodge
adopt the cost plus pricing strategy in
which the price of the room is set
according to their set profit. Price is
also depends on the demand if demand
is high then there is chance to price will
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Bundle pricing strategy- in this strategy
meals and other products are discounted in
compare to individual buying of each
product. So they offer the products bundle
to improve the volume sale and increase the
profit.
be up if demand is low then price will
be low. Every product and service have
their own different price according to
their different outcomes.
Place Mcdonald's operate more than 36000 outlets
in more than the 110 countries. Place
Selection strategy of Mcdonald's is they
select the location near the Mall, market and
highways where they find the good public
easily. The place that select by the
Mcdonald's for investments are have some
set standard which they have to follow.
McDonald's seek for that location for the
outlets which h would be accessible for the
people.
Travel lodge has set their strategies to
set their business where they can get
much profit. They set their hotel
according to different segments, like
tourist, business people and couple
traveller. The selecting of place or
location depend on which is accessible
by the traveller.
Promoti
on
Promotion is related the presenting the
organisation in front of the customer. In
other words how company attract the
customer towards their products and service.
Mcdonald's has set their different segment
which they have to target according to their
demand and preference. there are many
strategy using by the McDonald to promote
its products by TV, radio, print media,
online media by offer different discounts
etc(Du and et.al.,2016. ). Mcdonald's have
one of the most recognized symbol for the
product. Now days there are demand for the
Their promotional strategies is direct
marketing they are making aware the
consumer in front of them. They do
many different way to do marketing
like offering discounts, low prices
packages etc.
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healthier products so Mcdonald's also took a
great step towards the health product.
People People are related to the workers who
working in the company who manage the
function as it does, generally this peoples
are managers and employees who has direct
contact with the customers. Mcdonald's has
more than 235000 employees who are
actively working. Discussing on the people
aspect is important in marketing mix
because employees are the responsible for
the company's growth satisfied employees
work effectively for the company. It is
important factor for the company to analyse
the needs and wants of the employees.
The employees of the travelodge is very
skilled and qualified who can perform
the activity of the organisations
properly. Skilled employees help the
travelodge to expand their business and
provide the satisfied service to the
customers.
Process From many years Mcdonald's has develops
the process of their food and beverage
production. There are many advanced
equipments which improve the production
and help the process of the outlets.
Mcdonald's have many digital equipments
that help to make the production and process
function easy for the customer and for
company. Mcdonald's has focus to lean on
the advance technology. Their main concern
is to make the process convenient to the
customers.
Process is travelodge has different in
every section. Travelodge follow those
process which help them to grow and
supports them to achieve the objectives.
Physical
evidence
Physical evidence relate to the appearance
and ambiance of the store. Ambiance of the
Mcdonald's should be lively and
Travellodge have engaged up with the
varied hospitality booking chains and
internet websites so they can make the
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comfortable, physical evidence do impact
on the impression on the customer . Its help
them ton attract the customer towards their
store. Physical evidence also helps the
workers to help in pleasant environment.
brand awareness to te customers.
Different tactics applied by the Mcdonald's
Social media marketing- Mcdonald's promote their product on the social media platforms like
Facebook, Instagram and many others.
Mouth buzzing- Mcdonald's has promotes their service by giving customer satisfaction and
customer will promote their product to their group(Kerzner and Kerzner 2017.).
7.Marketing plan for McDonald's
Objectives- Mcdonald's has the aim to add the new healthy product in the menu and increase
their profitability.
SWOT ANALYSIS
Strengths
Mcdonald's has
planned to add the
healthy product in
affordable price it is
the good initiative by
the McDonald's which
help them to increase
the possibilities to get
profit.
Weakness
Mcdonald's is not
using the social media
to promote there
product. Also in
starting phase so there
is not wide range of
choice for food and
beverage items.
Opportunity
There are very few
restaurants who are
providing the healthy
product in there
restaurants so
competition for the
Mcdonald's is less and
they can grow very
fast. New product can
help the Mcdonald's to
expanding there
market share.
Threats
There are many
competitors in market
who also can adopt
this strategy so it can
be challenging for the
Mcdonald's to compete
with them.
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Porters five forces
Bargaining power of buyer Moderate
Potential entrants High
Bargaining power of supplier Low
Industry competitors Moderate
Threat of substitute products High
Marketing mix
Product- the healthy products provide by the Mcdonald's are in unique range. Healthy product
have mainly concerned with the people who are suffering from diabetes and high cholesterol
they can also enjoy the new healthy product.
Price- price of the healthy product is in affordable range. It will depend on the geographical area
and the cost will determine the price(Hamadi and Strudthoff 2016.).
Promotion- there is large group of customers who are engaged with the Mcdonald's, word of
mouth is helpful for the Mcdonald's to promote its new product.
Place- Mcdonald's select that place where demand of the healthy product is high.
Segmentation targeting and positioning
Mcdonald's will engage in applying age segmentation strategies. This will attract the old age
people who are suffering from the health problems. This also help the Mcdonald's to providing
the goods according to the needs and demands of consumer. Target strategy will also be utilise
by Mcdonald's. Targeting the customer according to their needs and demand. Positioning
strategy allow the Mcdonald's to utilising the resource effectively without much waste.
Budget- Mcdonald's has going to launch anew product which needs the appropriate
budget to launch and introduce the product in market. Budget will decide by the management by
analyse and research.
Controlling and monitoring
Monitoring and controlling is performed by the management of the Mcdonald's by taking the
deep analyse of the activity which are going in the organisation. Feedback from the consumer
help the management to get know about the product performance.
Detailed evidence based marketing plan for Mcdonald's
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Mcdonald's is going to start there new health product in the market so they need to prepare the
evidence based marketing plan it will involved the objectives, vision and mission. Aim of the
McDonald's is to successfully start their new health product. it will be beneficial for the company
to use the differentiated and multi tasking strategies.
CONCLUSION
From the above study it has been summarised that Mcdonald's has achieved its goals and
objectives by using of marketing plan, strategy analysis and other factors help the Mcdonald's to
grow in the market research explain that marketing function is the essential part of the company
to help in the achieve its objectives.
REFERENCES
Books and Journals
Davis, J.A., 2017. Measuring Marketing: The 100+ Essential Metrics Every Marketer Needs
3rd Edition. Walter de Gruyter GmbH & Co KG.
Datta, H., Ailawadi, K.L. and van Heerde, H.J., 2017. How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing. 81(3). pp.1-20.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. In The
marketing book (pp. 108-142). Routledge.
Du, F. and et.al.,2016. Do service providers adopting market segmentation need cooperation with
third parties? An application to hotels. International Journal of Contemporary Hospitality
Management. 28(1). pp.136-155.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Hamadi, T. and Strudthoff, M., 2016. Are behavioral pricing tactis also present in the B2B
context? Evidence from a complex chemical B2B product. Journal of Business Chemistry. 13(1).
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