Detailed Marketing Implementation Plan for McCafe in the UK Market

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This report provides a comprehensive analysis of McCafe's marketing implementation plan specifically tailored for the UK market. It begins with an introduction to the business and its objectives, highlighting the importance of marketing in the competitive UK coffee market, which sees 95 million cups sold daily. The report outlines specific, measurable, achievable, realistic, and timely (SMART) objectives for McCafe's marketing efforts, including budget preparation and stakeholder identification. It then delves into organizational preparedness, emphasizing the significance of human, financial, technological, and intellectual resources. Key stakeholders, such as employees, investors, the government, customers, and communities, are identified, with a focus on effective communication and team-building strategies. The report further details the marketing mix (product, place, price, and promotion), emphasizing the need for collaboration between departments. It also covers implementation schedules, media plans, and budget allocation. Finally, the report addresses defining metrics, risk management strategies, and methods for measuring progress, including internal audits and market research, providing a complete overview of McCafe's strategic approach to success in the UK market.
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Marketing implementation plan for McCafe in UK
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Contents
Assessment Task 1:....................................................................................................................1
1.1 Introduction and business description..............................................................................1
1.2 Implementation objectives................................................................................................1
1.3 Organizational Preparedness............................................................................................2
1.4 Key stakeholders..............................................................................................................4
1.5 Communication and team building strategies..................................................................5
1.6 Implementation Schedule.................................................................................................7
1.7 Media Plan........................................................................................................................8
1.8 Budget...............................................................................................................................8
1.9 Defining metrics, measurements and control processes...................................................9
1.10 Key risks and strategies for managing the same..........................................................10
Assessment Task 2:..................................................................................................................11
2.1 Establishing standards for measuring progress towards the planned objectives............11
2.2 Communication with different stakeholders..................................................................12
2.3 Collaboration between different teams...........................................................................13
2.4 Measuring actual performance through variance analysis of budget.............................13
2.5 Methods of gathering and analysing ongoing/future market research...........................13
2.6 Internal audits.................................................................................................................13
References................................................................................................................................15
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Assessment Task 1:
1.1 Introduction and business description
Marketing is considered as the most essential and necessary activity for a business as it
enables the companies to reach out to maximum potential customers across their target
markets thereby achieving success and profitability in the overall business environment1. This
particular research paper is intended towards exploring the different marketing strategies and
steps implemented by McCafe in order to attain sustainability and competitiveness in the
targeted UK market. It has been perceived that by providing everyone free coffee,
McDonald’s has been able to make McCafe one of the biggest coffee sellers in all over UK.
The demand for coffee among the British is increasing considerably with every passing day.
95 million cups of coffee are sold per day as per the reports of 2018. The prime factors
influencing the targeted UK coffee market are socio-cultural preferences of the consumers,
political factors, fiscal and taxation norms, GDP growth of the UK coffee industry,
technological and legal factors2. The overall analysis will consider the different resources and
stakeholders involved in an effective marketing implementation plan adopted by McCafe for
operating in UK. Essential team building strategies and media plan for promotions have also
been depicted in this study. Moreover, the discussion highlighted the key risks and strategies
for managing the same.
1.2 Implementation objectives
This research project on McCafe’s marketing implementation plan has been undertaken in
order to achieve the following objectives illustrated through the SMART objectives
framework:
Criteria Objectives
Specific To investigate the importance of framing an effective marketing
implementation plan for McCafe in its targeted UK market
Measurable To prepare a proper budget plan for McCafe’s market operations in
UK
1 Getz, Donald. "Development, and Marketing." Sport and adventure tourism 49 (2012).
2 BoBo, Walker. "They Call It Le Big Mac: The Importance of Adapting to Local Preferences
in Marketing Strategy." PhD diss., The University of Mississippi, 2017.
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Attainable/Achievable To demonstrate how different resources help in implementing a
specific marketing plan for the company
Realistic/Relevant To identify the key stakeholders involved in the marketing plan
Timely To prepare a definite timeframe for executing all the marketing
activities required for McCafe
1.3 Organizational Preparedness
An effective marketing plan comprises of all the necessary resources and facilities which
should be employed by the HR manager of McCafe in order make sure that all the activities
are undertaken in an effective manner3. The HR manager plays a pivotal role in choosing the
most appropriate resources that can help the company to manage their operations successfully
in the UK coffee industry. The most important resources required for McCafe in the
implementation of its marketing plan are:
Human resources: These resources signify the employees and the suppliers engaged
within a company. Since UK is a prospective market promising all the companies to
excel in their own respective industrial domains, the HR manager of McDonald’s
needs to utilise this opportunity to select the best talents and potential staffs for
performing the activities of McCafe in the targeted market4. The demand for coffee
among the British is much higher and people spend most of the time in the cafes. The
company has a large number of efficient and talented employees who have so far
helped them in maintaining successful position in all their operating markets5. Hence
the manager must appoint skilled staffs at the McCafe outlets in UK that will have
knowledge of preparing the best quality and tasty coffee, smoothies as well as
complimentary dishes as preferred by the consumers. Tasks must be allotted to them
as per their specialisation and efficacies. Moreover, McCafe has a close network with
all its suppliers of fresh coffee beans and other ingredients for the dishes and thus
associating with them will help the company to execute all the activities in an
effective manner in the targeted market. The HR manager provides all sorts of
facilities and benefits to the employees and suppliers which keep them motivated and
3 Nguyen, Phi. "Are you prepared for international franchising." This is a presentation given
at the International Franchise Summit in Kuala (2015).
4 Dib, Allan. The 1-page marketing plan. Page Two Books, 2018.
5 Nguyen, Phi. "Are you prepared for international franchising." This is a presentation given
at the International Franchise Summit in Kuala (2015).
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committed and thus their involvement in the marketing plan implementation is much
necessary6.
Financial resources: McCafe operates under the name of McDonald’s since the year
1993 and it has gained immense popularity and recognition all across the whole
world. The revenue margin and profitability of the company is much higher and as
such, they have a considerable amount of capital in their reserve fund which they can
utilise for carrying out their activities efficiently in the targeted UK food and beverage
market. Moreover, capital investments are also done in the company through the
savings of the owners as well as by taking loans from the banking institutions
depending upon the capital they need for operating their activities. Hence the same
sources can be used by McCafe for seeking financial assistance to operate effectively
in the UK targeted market.
Technological resources: McCafe has always been very much sound in its
technological use. They continuously aim at innovating and implementing advanced
and improved technologies in order to make speedy delivery to the consumers7. The
coffee machines and other equipment installed for preparing food items are much
improved and efficient enough to meet the customers’ demands much quickly8. Thus
installation of such equipment and machinery should be included in the marketing
implementation plan for operating in the UK market. Moreover, ICT should also be
included in the plan for facilitating exchange of information and communication
process effectively between different departments and customers. Staffs having
technological knowledge must also be appointed at the cafe so that the technologies
can be operated properly in favour of McCafe in the UK market.
Intellectual resources: McCafe maintains customer databases in a systematic way.
Moreover, they protect their products and services through their patents and
copyrights and thus no other company has the legal authority to copy them in the
market9. The company has sustained its competitive position for quite a longer period
of time and thus their products and services are easily recognisable across the whole
world. Hence McCafe has the capacity to protect their products and services and carry
6 Dobre, Ovidiu-Iliuta. "Employee motivation and organizational performance." Review of
applied socio-economic research 5, no. 1 (2013).
7 Yang, Man, and Peter Gabrielsson. "Entrepreneurial marketing of international high-tech
business-to-business new ventures: A decision-making process perspective." Industrial
Marketing Management 64 (2017): 147-160.
8 Curry, Jeffrey Edmund. International marketing. Laxmi Publications, Ltd., 2010.
9 Chernev, Alexander. The marketing plan handbook. Cerebellum Press, 2015.
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out their operations safely in the UK targeted market. The marketing implementation
plan of the company must involve the HR manager of the company to make sure that
they have effective control over their activities and functional ideas.
1.4 Key stakeholders
There are several stakeholders involved in the business activities of McCafe who have
specific roles and responsibilities towards leading the company to the highest peak of success
and profitability. During the marketing plan implementation and control process, the
company must interact with several stakeholders for conducting efficient business operations
in the targeted market of UK such as:
Employees: McCafe prioritises all its employees and considers them in the topmost
position in the stakeholder list. The employees require fair opportunities for
showcasing their skills and efficiencies at their work. McCafe understands the need
for having skilful employees for managing their operations and thus the manager of
the company needs to give adequate training to them so as to develop their knowledge
and efficiencies in operating in their targeted UK market. Most important information
regarding the marketing policies, employment legislations, political and economic
factors and customers’ choices must be given to the employees so that they can have
clear idea regarding the way in which they need to operate in UK. Moreover, they
should be informed about the wage structure and labour laws of UK which will help
them to perform satisfactorily therein.
Investors: The Company has potential investors who have remained associated with
them since many years. The investors play a vital role in helping McCafe to carry out
their operations and functionalities effectively by investing a considerable amount of
money required by them. The demands of the investors are taken into consideration
by the company and their interests are served well. In order to operate in the UK
market, the manager must communicate and interact with the key investors so that
they can receive necessary funds or capital for maintaining their business processes in
a significant way10. McCafe is a renowned cafeteria in the world and thus the manager
should not have any difficulty to convince the investors to invest money for their
operations in the UK market successfully.
10 Smith, Paul Russell, and Jonathan Taylor. Marketing communications: an integrated approach. Kogan Page
Publishers, 2004.
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Government: The manager of McCafe should also interact with the government of
UK in order to get license or permission of operating in the market. Legal rights and
allowances are required for maintaining and carrying out all the market activities
ethically in the targeted business environment11. The management needs to gain
proper knowledge and adequate information regarding the government policies, legal
measures, economic norms as well as environmental laws of UK for running their
business activities smoothly. Hence interactions must be encouraged with the
government.
Customers: McCafe needs to interact with the customers of UK in order to
understand their preferences and choices. The British are quite health conscious and
like to consume food that can keep them fit and healthy. McCafe’s concern was
always based on the welfare of the consumers and thus their corporate social
responsibility initiatives are very much effective12. Although the company’s food
quality was criticised in past few years, the management needs to ensure that they
provide better quality foods to the customers of UK to gain their loyalty and
satisfaction.
Communities: McCafe encourages various support initiatives and environmental
programs to ensure the wellbeing of the communities in which they operate.
Interactions with the communities have been a quite prominent activity for the
company as it aims to acquire information about the issues and challenges the people
face due to the consumption of unhealthy fast foods. McCafe must also conduct such
programs in the UK market segment so as to make the communities aware of the
healthy food items and coffees that they will be selling to the people thereby making
them aware of the brand.
1.5 Communication and team building strategies
Communication plays a pivotal role in the marketing plan implementation. In order to carry
out the activities in the targeted market of UK, the manager of McCafe must build up
efficient teams and encourage open communication and discussion among the team members
so that all the processes are undertaken in a significant way13. In the marketing plan of
11 Pride, William M., and Odies C. Ferrell. Foundations of marketing. Cengage Learning,
2016.
12 Wu, Shwu-Ing, and Wen-Hsuan Wang. "Impact of CSR perception on brand image, brand attitude and buying
willingness: A study of a global café." International Journal of Marketing Studies 6, no. 6 (2014): 43.
13 Zimmerman, Alan, and Jim Blythe. Business to business marketing management: A global
perspective. Routledge, 2017.
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McCafe, all the 4 elements of the marketing mix should be taken into consideration and for
each element, team building and communication is essential. The different elements of
marketing mix are:
Product: The products and services of McCafe are designed by the joint efforts of
both the production departments and the suppliers. The production departmental head
or staffs need to communicate with the suppliers regarding the supply of necessary
and relevant ingredients for preparing the food items14. Coordination and
collaboration is essential between the staffs of both the functional units of the
company for smooth flow of operations. Hence it is important for the manager to
encourage proper teamwork between the suppliers of raw materials and the staffs of
the production department.
Place: For deciding over the place where McCafe can open its outlets in the whole of
UK, the management needs to communicate with the government, lawyers and
property owners, with the permission of the company owner. All of them should be
involved in the marketing plan implementation and effective communication among
them should be facilitated in order to seek permission as well as gain knowledge
about several norms and legal measures to be complied with by the company. Thus a
good cafe business can be executed in the UK market by McCafe15.
Price: The prices of the products of the company must be decided by the manager by
maintaining effective communication with the production departmental head and the
distributors16. It is important to manage teamwork between them so that suitable
prices can be charged on the products. Moreover, communication with the marketing
departmental head is also required for the manager of McCafe so that the preferences
and affordability of the consumers of the targeted market can be judged.
Promotion: Promotions need proper communication and interaction with the
marketing department17. Communication and interaction between the manager and
marketing department team is necessary so that appropriate mediums and strategies
14 Luan, Y. Jackie, and K. Sudhir. "Forecasting marketing-mix responsiveness for new
products." Journal of Marketing Research 47, no. 3 (2010): 444-457.
15 Cant, Michael C. "Entrants and Winners of a Business Plan Competition: Does Marketing
Media Play a Role in Success?." Journal of Entrepreneurship Education 19, no. 2 (2016): 98.
16 Gordon, Ross. "Re-thinking and re-tooling the social marketing mix." Australasian Marketing Journal
(AMJ) 20, no. 2 (2012): 122-126.
17 Zhang, Jingwei, and Deniss Yeung. "Sales and marketing." (2016).
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can be chosen for promoting and marketing their products and services widely in the
UK market.
1.6 Implementation Schedule
It is very important for the business organizations to frame an effective marketing
implementation plan in which all their activities and functionalities will be included.
Following the plan will help in conducting all their business processes in a systematic
manner.
Steps in the marketing plan Time schedules for the
activities
Personnel responsible for
undertaking the activities
Selection of places for
outlets
12 weeks Owner of the company
Resourcing funds for
operations
10 weeks Owner and CEO of the
company
Employing skilled staffs for
different departments
15 weeks HR manager
Deploying necessary
equipment and machinery
7 weeks HR manager and
administrative head
Setting short-term and
long-term targets
5 weeks CEO of the company
Conducting market
analysis
15 weeks Marketing team
Selecting the menu 8 weeks Production departmental
head
Advertising and
promotions
12 weeks Marketing head and
departmental staffs
1.7 Media Plan
UK market is very much tech-savvy and the people are highly associated with the use of
social media channels. Digital platforms are regarded as the effective mediums for promoting
the products and services of the companies in the market18. McCafe encourages the use of
social media marketing practices and thus these can help them to even promote their offerings
18 Wymbs, Cliff. "Digital marketing: The time for a new “academic major” has
arrived." Journal of Marketing Education 33, no. 1 (2011): 93-106.
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broadly in the UK targeted market. Better consumer response and increased market
opportunities can be ensured by the company through the social media sites19. Facebook,
Twitter, Instagram, Pinterest and Google+ are the most preferred social media sites which can
be used by McCafe in order to create maximum market awareness among the UK customers.
Moreover, digital campaigns can be organized through which the consumers’ interests over
its offerings can be attracted20. Traditional marketing and promotional techniques can also be
used such as distribution of pamphlets and flyers on certain occasions like Good Friday,
Christmas and New Year, creating children health awareness programs by involving British
children so as to ensure that the child health is in the safe hands of McCafe’s food products21.
1.8 Budget
The budget plan of McCafe for opening one outlet operating in UK is highlighted below:
Activities Amount in £
Setting locations for outlet 80000
Monthly lease payments (for each outlet) 1500
Security deposit 1500
Insurance premiums 500
Labour charges 100000
Machinery and equipment cost 50000
Production cost 30000
Supplier and distributor charges 35000
Marketing and advertising cost 45000
Total 343500
1.9 Defining metrics, measurements and control processes
It is very important for the managers of McCafe to measure and control the performance of
the resources allocated and activities undertaken in the marketing implementation plan. The
19 Close, Angeline G., Ashutosh Dixit, and Naresh K. Malhotra. "Chalkboards to cybercourses: The Internet and
marketing education." Marketing Education Review 15, no. 2 (2005): 81-94.
20 Mullins, John W., Orville C. Walker, Harper W. Boyd, and Jean-Claude
Larréché. Marketing management: A strategic decision-making approach. New York:
McGraw-Hill, 2013.
21 Yoon, Donghwan, and Youn-Kyung Kim. "Effects of self-congruity and source credibility
on consumer responses to coffeehouse advertising." Journal of Hospitality Marketing &
Management 25, no. 2 (2016): 167-196.
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intended objectives can be controlled and measured with the help of KPIs in the following
ways:
Activities/objectives Controlling measures Individuals involved
Effectiveness of the
prepared marketing
implementation plan
By constantly reviewing and
monitoring the marketing
plan
The CEO and marketing
manager of McCafe
Maintaining proper budget
plan
Looking on the financial
needs of the company and
forecasting the future
requirement of funds
CEO and administrative head
of the company
Effectiveness of different
resources involved
Allocating tasks to the
employees as per the
organizational requirements
and employee qualifications,
deploying technological
equipment and machinery for
the company’s benefit and
checking on the funds and
assessing their sources
HR manager
Performance of human and
technological resources
Constant monitoring and
supervision of the employee
tasks and checking on the
machines daily
Departmental heads
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1.10 Key risks and strategies for managing the same
Figure: Risks in international business
Source: https://sites.google.com/site/ibwvietnam/4-risks-in-internatio
The above figure depicts four different risks which can be faced by McCafe while
formulating their marketing plan and implementing the same in the UK market.
Cross-cultural risk: The major risk that is faced by the company in the marketing
implementation planning process is the cross-cultural differences among the
customers. The preferences and tastes of the consumers in US and UK vary to a
significant extent. Hence the demands of the British differ from the Americans which
should be acknowledged by the company in order to meet their interests
significantly22. Moreover, this risk is also faced while interacting with the employees,
suppliers, distributors and other stakeholders of the market. Hence before entering in
the UK market, McCafe should make complete market analysis and understand the
cultural differences of the people, decision-making styles and ethical practices of the
country which will help the company to successfully negotiate with the stakeholders
and operate smoothly in the market.
22 Christopher, Martin, Carlos Mena, Omera Khan, and Oznur Yurt. "Approaches to managing global sourcing
risk." Supply Chain Management: An International Journal 16, no. 2 (2011): 67-81.
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