Marketing Report: McDonald's Roles, 7Ps, Marketing Plan, and Analysis

This report provides a detailed analysis of McDonald's marketing strategies. It begins with an introduction to marketing concepts, emphasizing customer focus and profitability. The first task examines the roles and responsibilities of marketing functions within McDonald's, including distribution, financing, market research, pricing, product/service management, promotion, and selling. The second part of the report explores the roles of marketing in the wider organizational context, highlighting the importance of strategy, market research, product development, and communication. The report then compares the 7Ps of marketing for McDonald's and Aldi, providing insights into their different approaches. Finally, the report concludes with a basic marketing plan for McDonald's. The report also covers how McDonald's uses marketing to enhance its brand value and increase market share, while also discussing how marketing activities are linked with other departments of the organization. The analysis includes aspects such as product, place, price, promotion, people, process and physical evidence for McDonald's. The report provides a comprehensive overview of marketing principles and their application in a real-world business context.

MARKETING ESSENTIALS
BUSINESS

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Roles and responsibilities of marketing function for McDonald's...................................1
P2. Roles and responsibilities of marketing in relation to wider organisational context.......4
TASK 2............................................................................................................................................5
P3. Comparing 7P's of marketing of McDonald's and Aldi...................................................5
P4. Basic marketing plan for McDonald's..............................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is an activity undertaken by business in relation to buying and selling of its
products and services. This activities includes advertising, selling and delivery of products and
services to its customers. The marketing activities is conducted to get attention of customers
towards organisation by the use of slogans, packaging and through media exposure. It is also
termed as an activity which includes communication, distribution and exchange of products and
services offered by a business to create value for consumers and its stakeholders (Aaboud and et.
al., 2017). Main focus of marketing is on their customers so that they can maximise the
profitability. Following assignment is based on McDonald's which is a fast food restaurant chain
based in the UK and operating at global level. In the present report, roles and responsibilities of
marketing function are studied briefly in context of McDonald's along with highlighting 7P's of
marketing. Apart from that, basic marketing plan for organisation is described here.
TASK 1
P1. Roles and responsibilities of marketing function for McDonald's
Marketing concept
It is the management philosophy which states that organisation must analyse needs of its
target customers and decisions must be taken in order to fulfil the same rather than just focusing
on competition (Aad and et. al., 2012). In today's business, most of the organisations have
adopted marketing concepts which support them in competition and satisfying customers.
Roles and responsibilities of marketing function:
There are seven functions of marketing which business must consider as important
factors. These seven functions are described as follows:-
1. Distribution: - It is all about taking decisions on the way in which produced products
and services of organisation have to be delivered among its target customers. Under this,
process and channels of delivering goods and services are decided. It highly supports in
customer’s convenience to avail benefits out of services offered by the organisation. It
main responsibility is to eliminate the gap between manufacturing and consumption of
good offered by organisation. This is only a function which is completely responsible for
selection of distribution channel which supports delivering of products and services
effectively.
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2. Financing: - It is completely related to funds which have to be utilised by organisation
for marketing of its products and services (Al-Hasan, Thomas and Mansour, 2016). In
this, marketing managers decide the amount to be spent and sources from where funds
have to be collected. The main responsibility of financing function is determine best
sources for collection of funds which incurs less cost. It is also responsible for
determining the budget where the funds have to spent more or less.
3. Market research: - It is a marketing function in which complete relevant information of
target market and customers is collected by the marketing manager of business
organisation. It supports the firm to determine customers for whom products and services
are meant for and evaluates significant market where services are to be offered. This
supports organisation in determining potential customers and effective market by which
they can earn more profits by increasing more number of service users (Basic elements of
the marketing function, 2012). It has responsibility to reveal the significant market and
customers who will support in business success.
4. Pricing: - It is an important role of marketing where managers determine the prices of
products and services. Taking price decision is the most difficult task for organisation. It
is necessary to determine the best price for product which helps in increasing profits and
customers (Babin and Zikmund, 2015). If prices for product is too high, organisation may
lose its customers. Apart from this, if prices are set too low, it directly affects the
profitability of business.
5. Product and service management: - It is another responsibility of marketing after
determining the target market and determination of prices for products and services
offered by organisation. According to this, it is necessary to manage the services and
goods. It includes listening to customer’s grievances and responding accordingly in order
to fulfil their needs and wants. This function is responsible to solve all the problems faced
by its service user effectively and efficiently. It is directly related to after sale service for
the purchased products by customers.
6. Promotion: - It refers to that function of marketing which is associated with advertising
of organisation’s products and services in order to attract new customers and retaining the
existing one for business. This determines the tools of promotion which have to be used
by the firm to gain maximum benefits out of it. This function have complete
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responsibilities to select best tools which significantly helps in attaining promotion
objectives. This function is also completely responsible to determine the effective
promotion method which incurs less cost for organisation.
7. Selling: - The marketing and selling is closely linked with each other. It is the most
important role of marketing as success of a product or service highly depends on this. It is
performed after analysing the target customer's with their needs and wants. In this,
products and services of organisation are offered within target market to end customers
with an aim to earn maximum profits (Baines, Fill and Page, 2013). It have main role in
planning strategies for sales of products ans services. It have responsibility to forecast
the future sales of goods.
P2. Roles and responsibilities of marketing in relation to wider organisational context
The marketing department of business has responsibility for increasing sales, market
expansion, enhancing revenue and number of customers. These are important for gaining higher
growth in business. It significantly helps in developing the brand value of business and
increasing market share.
The activities conducted under marketing of business products is directly linked with
each department of organisation such as Finance, Human Resource and IT department.
McDonald's have planned advertising campaign for the promotion of its business which requires
assistance from each department. For example, funds which have to be utilised in launching
campaign is managed with the help of finance department of business. Apart from this, HR
department assists marketing department by providing talented individuals with good knowledge
which supports in conducting the campaign significantly. The IT department of McDonald's
supports in launching campaign on online media such as Facebook and Twitter.
Following are the roles and responsibilities of marketing of McDonald's:
Strategy: - Senior marketing manager of business has to take complete responsibility
regarding development of strategies as per organisation’s goals and objectives. This development
of strategies as per objective helps in increasing the market share of organisation. For instance,
McDonald's has entered into new market for serving its food items. Development of significant
strategy directly supports in the growth of business by increasing sales and profits (Braslow,
2015).
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Market research: - The key responsibility of organisation’s marketing department is to
conduct market research where business has to offer its products and services. It is done by the
department in order to determine opportunities available for McDonald's in its target market.
Through the same, needs and preferences of customers can be easily determined which assist in
offering the food products as per needs of target market and support in satisfying them.
Development of product: - It is another responsibility of marketing under which existing
products of business are developed. The development of food products is done by determining
the needs and preferences of customers by conducting market research. The products are
developed with the help of development teams (Caporaso and et. al., 2010). The product
development supports McDonald's in capturing interest of new customers towards business.
Communication: - Marketing has complete responsibility in planning advertising
campaigns and developing communication tools for the promotion of business and its products.
The communication tools directly support in creating awareness about McDonald's in its target
market. Organisation has used different means of promotional tools such as television, social
media broad casting, radio and television. This has supported in increasing the number of
customers and brand value of McDonald's.
TASK 2
P3. Comparing 7P's of marketing of McDonald's and Aldi
McDonald's
It is a large chain restaurant which was found in the year 1937 by Richard and Maurice
McDonald's. It is also a franchise restaurant which operates in almost 121 countries at present
with more than 30000 outlets. This business serves almost 53 million customers on daily basis
(Chamorro-Mera, Miranda and Rubio, 2014).
7P's of marketing of McDonald's:
Product
McDonald's is a large chain restaurant which provides a wide range of food items to its
customers. Business offers both veg and non-veg food items such as cheese burgers and
hamburgers, chicken Mc nuggets and french fries, etc. Organisation provides high quality food
items to customers which support in increasing its customer base and effectively developing the
brand image. McDonald's provides food items by taking due care in relation to religion and
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culture of its customers. It has separate cooking area with good cooking equipment which
supports in providing healthy food.
Place
McDonald's operates in almost 121 countries which holds approximately 30000
restaurants. It uses aggressive business expansion strategy which aims in the establishment of
business within urban and rural areas. Organisation has restaurants in the best locations which
support in providing convenience to its target customers. They have built high quality restaurant
in posh areas such as airports, malls and nearby highways and colleges. The restaurants in prime
locations help to attract customers easily which supports in improving brand value and
increasing the market share as well as profits (Clow and James, 2013).
Price
Determining price for products is a difficult task for the organisation. It is important for
the firm to set effective price for its food items which support in increasing demand for goods at
that cost and helps in earning profits out of it. McDonald's is using cost leadership strategy for its
business and offers food and drinks at a competitive price level. It has certain food item at
affordable price level and serves many combos.
Promotion
It is the key element for communicating within target market and customers and in
building relations. Promotion supports the organisation in creating a strong brand value and
supports in increasing customers for offered goods and commodities. This element of marketing
mix is the combination of tools such as advertising, sales promotion, personal selling and public
relation. McDonald's has used various tools such as television, radio and social media for
advertising purposes. Hoardings, direct mails and lucky draws are effectively used by business
for conducting the promotional activities.
People
This element is important for new model of marketing mix. The customers and
employees are included under this element. Focus on building healthy relationship with
customers helps business to earn profits out of products served to them. McDonald's focus on
employing right individuals who help in delivering effective services and support in satisfying
the customers. Business also provides training to its staff members for providing effective
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services. Organisation have standard uniform for employees for maintaining equality while
delivering services (Cohen and et. al., 2010).
Process
It refers to functional activity of organisation which ensures availability of products and
service quality. The simple process of business helps in providing convenience to customers
while acquiring products and services. McDonald's has transparent food processing for its
customers. For providing services of food items effectively, organisation use new tools in
distribution and packaging. McDonald's allows its customers to check ingredients which are used
in the food offered.
Physical evidence
It can be clearly said that services are intangible in nature which means it cannot be seen.
Moreover, customers depend upon the physical layout of business before purchasing anything
out of it (Cua, Reames and Chai, 2013). In simple terms, physical evidence refers to
organisations appearance. McDonald's has attractive appearance that supports in gaining
attention of customers and drives demand for food items offered by it. Firm maintains its
ambience with colourful walls, attractive furniture and proper cleanness. It has same interior in
all restaurants all over the globe with common themes.
Aldi
It is a grocery retail business which was established in the year 1913. In past years, it was
generally known for selling customised products. It is the fourth most recognised retail store in
United Kingdom which provides high quality of products to its customers at a reasonable price
range. It operates business with an aim of providing day to day products to its customers with
standard quality at lower price.
7P's of marketing of Aldi:
Product
It is the main element of business by which organisation tries to earn profits through
making high sale. Restaurant tries to produce products as per the needs and wants of customers
to satisfy them accordingly. Aldi claims to provide its products at economical price which can be
afforded by normal individuals of the society. The goods of Aldi are being sourced from chosen
suppliers and these are than branded as their own in order to control production with cost. It is
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the only reason which supports in keeping the price for its products low with high quality
standards. The organisation does not makes any changes in its food products but it modifies non-
food items in certain time intervals which helps to remain in the competition for longer span of
time (Dioko, 2016).
Place
This element of marketing mix states the location where products of business are sold. It
is an important part as the place must be selected which helps in consumer convenience. Aldi
grocery store is operating in almost 18 countries with 8000 stores and the organisation generally
starts its new store every week in Britain. Organisation keeps the layout of store simple in order
to keep operation’s cost to be minimum. This benefits the business in providing goods at
reasonable and affordable rate.
Price
It is a significant term which creates the demand for products and services. It is a difficult
task for the organisation to determine product’s price which supports in competing with
competitors with earnings profits (Harris, Schwartz and Brownell, 2010). Aldi is using
competitive pricing strategies for its goods. For cutting the cost of products, organisation
purchases goods in bulk which forces suppliers to charge less cost. By effective use of this
technique, it keeps the overall cost less and provides products at affordable price to its
customers.
Promotion
It refers to the process by which organisation communicates with its target customers
and market in relation to its products offered. This element of promotion under marketing mix
includes advertising and branding. It is conducted by the organisation in order to create
awareness among customers for goods offered to generate demand and for increasing brand
value of business. Aldi has used two methods in the promotion i.e. advertising and leaflets.
Business has conducted advertising effectively by the use of television and social media.
Organisation distributes almost 1million leaflets every week as promotion.
People
On the individuals of society where business operates, success of business depends to a
high extent. Reputation of brand is completely in the hands of employees working in the firm.
For this, Aldi provides heavy discount on the purchase of goods and commodities by its staff
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members. It focuses on providing training to its employees in order to provide knowledge which
will assist in satisfying customers through rendering effective services.
Process
It refers to the behaviour of individuals who are involved in providing services i.e.
customer’s waiting time, information available for users and staff, etc. Aldi has kept store layout
very simple which supports individuals in finding the required goods and commodities easily by
their own (Hoványi, 2013). The simple store layout of Aldi supports in reducing waiting time of
customers to acquire products.
Physical evidence
Aldi is a globally renowned brand for its simplicity in business process, effective pricing
and standardization. Organisation has kept layout of its store attractive which helps to seek the
attention of customers towards it (Jain, Ahuja and Medury, 2013).
P4. Basic marketing plan for McDonald's
The basic marketing of McDonald's is being described as follows:-
Introduction to organisation:
It is a large chain restaurant organisation which operates its business in almost 119
countries with approximately 30000 restaurants over there. It is the world’s largest food chain
restaurant.
Vision and mission:
 Mission:- Mission statement of McDonald's is “To be our customers” most favourite
place where they can have large variety of veg and non-veg food items of high quality
with effective services and clean and healthy environment.
 Vision: - The vision statement of McDonald's is “To be Estonia's best quick service
restaurant”.
Statement of marketing goal
The organisation believes that customer’s point of view is only aspect that guarantees the
success of products offered. Thus, marketing strategies of organisation are planned as per
customer’s point of view in relation to its products. It believes that creating strong perception for
products in the minds of customers directly lead to attain success (Marketing Plan, 2016).
SWOT analysis of McDonald's:-
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 Strengths: - It has presence in most of the countries which supports is fighting with
competition. It is the leading organisation in both markets i.e. domestic and international.
The business is capable in generating high revenue from delivery of its products and
services (Joshi, 2014).
 Weaknesses: - Organisation has faced difficulty in the expansion due to market
saturation. It have slow process in product innovation. It focuses only on young age
group and young urban families.
 Opportunities: - McDonald's has great opportunities in increasing the customer base by
providing new value added services. It can expand its business in more countries as it is
having significant opportunity for the product development. The business has significant
opportunities in relation to innovation in its products.
 Threats: - Continuous changes in values of foreign currency acts as the biggest threat for
McDonald's. It is open for alteration in all over the economies (Kirby, 2012). The
organisation is facing significant threats from its competitors operating in similar kind of
business such as KFC and Pizza Hut.
Competitors:
McDonald's faces competition from similar large chain restaurants all over the world.
The main competitors are KFC, Pizza Hut and Burger King. These business directly impacts the
number of customers and profitability of McDonald's.
Marketing objectives of business:
McDonald's is currently focusing on delivering services within the time frame as
customers in today's world do not have much time. Organisation has analysed eating habits of
individuals to deliver the food products as per their needs and preferences which support in
attaining high satisfaction level of customers.
Overall objectives:
 To provide easy access to customers for its products and services
 To have an easy process of handling complaints
 To cover high target market To increase the sales and create brand awareness
Target market segment:
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McDonald's is being using demographic strategy for market segmentation. Under this
strategy, the age of individuals is considered as an important factor. It mainly targets children
and young urban family for its products and services.
Main strategies:
1. Market penetration: - McDonald's has planned to improve the strategies of market
penetration by inculcating promotion in interior areas. It is done in order to increase the
market share by attracting customers through promotional activities. Advertising
campaign is being launched by McDonald's for its domestic market in every country
(Lane, 2014).
2. Market development: - McDonald's is one of the best examples of market development in
last few years working in large chain restaurant. This development of market strategy is
followed by organisation with the help of company expansion plans in different and new
markets.
3. Service/program development: - McDonald's has given main importance to the
development of service programs and through this, business focuses on providing the best
service to its customers (Lin, 2011). Organisation has effectively developed the strategies
in relation to customer care by evaluating satisfaction level of service users by taking
feedbacks. This helps in increasing the existing customer base of company.
Budget:
Marketing budgets are framed by McDonald's to assist the strategies framed. It is
because; these marketing activities require more funds. The financial team prepares budget for
the allocation of funds to be required in marketing. It is done after analysing the strategies.
Usually, 50% of complete organisation’s budget is utilised by the marketing department of
organisation.
Marketing Budget:
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
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