Marketing Essentials Report: McDonald's, KFC, and Market Strategies

This report delves into the fundamentals of marketing, exploring key concepts and trends within the fast-food industry. It begins with an introduction to marketing, its definition, and current trends, using McDonald's as a case study. The report then provides an overview of the marketing process, detailing goal setting, situation analysis, and strategy development. It outlines the roles and responsibilities of a marketing manager, emphasizing market research, strategy development, customer relationship management, and identifying business opportunities. The influence of marketing on various functional departments, such as production/operations, finance, and human resources, is examined, highlighting the interrelationships and importance of effective collaboration. The value and significance of the marketing role are discussed, followed by a comparison of McDonald's and KFC's marketing mix, including product, place, price, promotion, process, people, and physical environment. Finally, the report evaluates a basic marketing plan, drawing conclusions on the effectiveness of the strategies employed. This report, contributed by a student, is available on Desklib, a platform offering AI-based study tools and resources.

MARKETING ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Concept Of Marketing And Tends..........................................................................................1
2. Overview Of Marketing Process.............................................................................................2
3. Roles And Responsibilities Of A Marketing Manager............................................................4
4. Influence Of Marketing And its Interrelation With Functional Departments.........................5
5. Value and Importance Of Marketing Role..............................................................................5
6. Significance Of Having Effective Interrelationships Between Different Functional
Departments.................................................................................................................................6
7) Compare the organisation applies the marketing mix...................................6
8). Produce and evaluate a basic marketing plan.................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing means creating developing promoting goods and services to consumer and
services. Marketing aim is maximised profit through developing sales and customer requirement
and promoting product. McDonald is American fast food company it was started in 1948, fast
food chain is one of the largest in the world. 36000 restaurants around the world and 101
countries. Around the world 70 million people serve every day. Report will include current and
future market trend, overview of the marking process, and explain the role, responsibilities, value
and importance of marketing manager. Camper the McDonald and KFC marking mix and
achieve business achieve and evaluate the market plan.
TASK 1
1. Concept Of Marketing And Tends
Essentials of Marketing refers to the all those elements that are necessary in making the
marketing of that company, meaningful and are really worth enough (Batabyal and Mukherjee,
2016). Now, every organisation has to follow some trends that, helps the organisation to sustain
in a typically competitive market. This project report lays its emphasis on a fast food and
beverage company:- McDonald's.
Concept of Marketing is as follows:-
 Production Concept:- This concept focuses on the expectations of consumer regarding
company products that are made easily available to the customer, keeping in mind the
affordability which will ultimately affect the purchasing power of the consumer
(Batabyal and Mukherjee, 2016).
 Product Concept:- Consumer is the king of market so, the product is made by keeping in
mind the needs and demands of company (Cobb-Walgren and et.al., 2017). McDonald's
is the company which is offering such eatables to its customer that are the best in each
way. Company is also trying some experiments so, as to offer something new and
different to its customers.
 Selling Concept:- One of the very oldest concept of selling is product would be sold only
through active promotion but, the customer will not going to respond to the products until
and unless it is published (Batabyal and Mukherjee, 2016). So, McDonald's is trying to
sell what it makes and not making the products so as to meet the market needs.
1

 Marketing Concept:- It is a broader concept as compared to that of selling (Meyer, 2017).
Because marketing starts from identifying the needs of customer and selling ends just by
making the product delivered in the hands of ultimate consumer.
 Societal Marketing Concept:- It is such a concept, which focuses on the needs and wants
of a targeted consumer and making the customer feel the value of money that he is paying
to buy that particular product (Durkin and Perez, 2017).
Marketing Trends that are being used in Mc Donald's are as follows:-
 Virtual Reality:- These days, most of the big and small brands are using this tool in an
effective manner.
 Interactive Content:- The content should be such, that it gives reader a feel of interaction
and also most of the B2B brands are relying on the blog content and working on it so
that, reader feels familiar and more interactive with the brand (Durkin and Perez, 2017).
2. Overview Of Marketing Process
Marketing is a process which begins from identifying the needs and demands of customer
and then, taking suitable and deliberate series of actions so as to achieve the goals. The series of
process are as follows:-
Goals are made and objectives are framed and after that, analysis of internal and external
business factors is done (Järvinen and Taiminen, 2016). After this only, planning of product,
implementation and lastly an eye is kept on the track of progress. In case of McDonald's, the
time when it had entered in India, it had done research and planning on its product on the basis of
people residing over here. Now, after having complete idea on basis of mindset and taste of
different people, it started keeping an eye on progress track of company.
 Mission:- McDonald's mission statement is to be the favourite place of customer where
they can easily, eat and drink.
 Situation Analysis:- McDonald's was having a competitive advantage over the other fast
food players in the industry reason being, it has analysed that, the people are very health
concious and always prefer eating healthy food (Järvinen and Taiminen, 2016).
Observing this, the organisation started offering eatables to its consumers by adding all
sort of vegetables and salad as a starter.
2

 Marketing Strategy:- McDonald's set a benchmark in front of its competitors which
actually proved to be milestone in the fast food industry (Shankar, 2016). Because they
were trying something new regularly so as to satisfy needs of customers.
3. Roles And Responsibilities Of A Marketing Manager
A marketing manager has to perform different functions in an organisation. He is mainly
focused on the practical aspects of the organisation. Marketing manager is in charge of entire
marketing activities and is therefore, solely responsible for the formulation, direction and
coordination of all the marketing activities that are to be executed by his teammates so that, the
customers get influence to purchase the products of company (Shankar, 2016).
 Market Research:- Research plays a crucial role in gaining a crystal clear understanding
as to whether, the launch of product would be successful in that area or not (Järvinen and
Taiminen, 2016). Research offers new opportunities before the marketing personnel so
that, they may be able to create a market niche for its products and services.
 Developing Market Strategy:- After doing a proper market research, its convenient for
the market manager and the team to prepare a new strategy and work on it (Järvinen and
Taiminen, 2016). Marketing Manager of McDonald's is working on this strategy that,
after analysing and observing complete market they, start offering their products
according to the taste.
 Customer Relationship Management:- Building the relationship with the customers is
very necessary. McDonald's after offering it's products to customers, always asks for any
valuable suggestion if the client wants to give. And always ready for the feedback of
customers so as to know, scope of improvement (Cobb-Walgren and et.al., 2017).
 Identifying New Business Opportunities:- McDonald's is always in search of new
opportunities that, leads to growth of company. Marketing manager of McDonald's is
engaged in the research and development just with the motive of identifying new career
growth of company (Cobb-Walgren and et.al., 2017).
3

4. Influence Of Marketing And its Interrelation With Functional Departments
Marketing has its influence on other departments in a different manner (Meyer, 2017).
Each department is somehow or in a different way is linked with the marketing department. In
words of Peter Drucker- "The whole business seen from customers point of view."
Production/Operations Management:- Marketing Department is linked closely with this
respective department, just to make sure that:-
 Proper research and development has been made with the motive of satisfying the current
and future needs of customers (Meyer, 2017).
 McDonald's is preparing the products as per the demands and needs of that ultimate
consumer.
In this case, deadlines would be set by the personnel of marketing department that may be
stretched according to the capabilities of production department (Meyer, 2017). Until and unless
the products are not ready from the end of production department, marketing department would
not be able to take products to the market and would not be able to gain competitive advantage
from the market.
Finance Department:- Marketing Department is having its influence on the Finance Department
in a different manner.
Now, here, if the Finance Department will not pass the fund to the marketing team, then,
they would not be able to meet out the research, promotion and distribution expenses
(Durkin and Perez, 2017).
This respected department, wants all departments to work within the specified budget
allocated for them separately.
Human Resource Management:- Influence of marketing department on this respected department
is such that, it recruits new members for the marketing department that have appropriate skills to
achieve the goal (Durkin and Perez, 2017).
 Research and develop new product ideas.
 Meet production targets.
 Creating ambitious and competent sale force.
5. Value and Importance Of Marketing Role
Marketing Personnel has its own importance in every organisation.
 It helps in transfer; exchange and movement of goods
4

 Generates employment
 Acts as a source of new ideas
 A basis for making decisions.
 Helpful in building economy.
6. Significance Of Having Effective Interrelationships Between Different Functional
Departments
Marketing Department is actually having very effective relationship with each and every
department whether it's production; finance and human resource department (Durkin and Perez,
2017). Now, production department is doing the production of company's products when the
research and development work is done by the marketing personnel. Finance Department, will
raise the fund for the promotion and marketing of company's products in effective manner
(Batabyal and Mukherjee, 2016). Reason being, finance department works like blood flow for a
corporate entity and if there will be proper flow of cash in every organisation, then, the firm or
entity would be able to grow in an effective manner. In the same way, if H. R. department is
hiring any candidate in the organisation for the marketing department, with motive of
accomplishing of goals in better, fast and effective manner (Batabyal and Mukherjee, 2016). By
the score of, marketing department plays a vital role in building up any country's economy; in
creating employment; generating new ideas; creating growth for the company in challenging
situations.
7) Compare the organisation applies the marketing mix
Marking mix:
Marketing mix is the element to make market strategy, control marketing plan. Its main
aim to earn and maximise its profit . Factors of marketing mix 1) product 2) place 3) price 4)
Process 5) people 6) promotion 7) physical environment
Compression between McDonald & KFC
COMPANY McDonald KFC
Product Beef product, buggers,
hamburgers and sandwiches,
chicken and fish, salad,
Complete nonage product like
KFC's grilled chicken, hot
wings fried chicken,KFC fried
5

beverages, McCafe, All day
breakfast. Snacks and Side,
and dessert(Limón, 2018).
Product is fundamental
determined brand and
corporate image.
Gizzard, Nashville hot
chicken, popcorn chicken.
Other product are Sandwiches
, meal, sides , drinks, original
recipe twister warp, KGC
twister Warp, Honey BBQ
twister warp, etc.
Place Distribute and offer the
product at varices venues and
location. Mostly preferred
location Restaurants, Kiosks,
mobile app, mall, and
websites. Where the product
are offered and where
customer can access them.
Restaurant, kiosks. McDonald
mobile app, and other app and
website.
Initially KFC opened in metro
and tier 1 cities. Now days it
has opened and moved in tier 2
cities. First level channels for
the customer services channels
like ( manufactures, retailers,
consumers )
Main target place: free home
delivery, accessibility,
location, economically
convenient(Dogramatzis,
2015).
Price Stable and affordable,
Fellow bundle pricing (Offer
prices discount on bundles
meal and other product.)
Psychological pricing strategy(
encourage customer to buy
more product)
Costly product & services.
Fellow optional pricing and
mixed bundling pricing. Use
different pricing strategy for
market skimming. Pricing are
comparable to the competitors.
It is price sensitive market.
Target customer is families
and young people. And semi
urban areas target customers
are upper middle class and
6

middle class family.
Bundle product price is less as
compared combined price.
It focused taste, quality, class,
and combination of product
and quality.
Process Maintain effective policies and
strategies for maximize
productivity and performance
in the business area .
Design of goods and services -
quality management- design
process- capacity design-
product design- location
strategy, layout design and
strategy - supply chain
management – job design and
human resource – inventory
management – maintenance.
Work flow of operation
techniques.
Operation manager – good
team selection- good team
services- good target-good
revenues.
Training – target - motivation-
incentive- performance bonus
– extra benefit – promotion.
People Top to bottom level customers.
Target customers are young
generation and kids.
Provide very highest quality
food at low and conferable
price. Its staff special not train
for the customer services and
productivity(Robles and
Hassan, 2015). Septically hired
train Workers. Low
Top to bottom and bottom to
top.
Target customers are family
and young generation.
Kfc provide highest quality
meal at affordable prices and
target. KFC staff specially
trained for the customer
services. Employment
opportunities also available in
7

employment opportunity for
the freshers.
the restaurants and KFC
corporate.
Promotion Online, brand name,
advertisement, sales
promotions, public relation,
and direct marketing .
Focuses on marketing
communications with targeting
customer.
It offers the discounting
coupons and freebies for
certain product and product
bundles
It provides retail sales and
services. Continuous struggles
in offering value prices item
and expensive item.
Print media advertisement,
offers, social sites, gift
coupon, kids meal, LCD
display existing menu,
discount, public relation, event
and experience, feedback.
Kfc spent 2% of profit for the
product promotion.
Main tool to bring all chicken
lover attention one kind of
delicious product.
Physical environment Maintain good and health
environment. Company first
task to develop and maintain a
strong or wide physical
environment. Make stylish
and eco-frendly packing. Used
fiber based packing products.
The firm use new and stylish
design in every season for the
attracting the customer.
McDonald use statue of a boy
for the attract the customer.
KFC store and locations
design and its logo are most
attractive. The restaurant
design and healthy and clean
environment are more
conferable for the customer.
KFC largest and famous food
chain. It is famous for the non
veg snacks. Customer attract
with the promotional cups,
different type logo
design(Rind, Subhpoto and
Sheikh, 2017).
8

8). Produce and evaluate a basic marketing plan
Marketing planning process:
Market planing process develop and systematic approaches of achieve market goal,
strategy, and business activity. It helps to achieve business objective. The most important
document in a business for the planning of long term business(Lindquist, Lane and Kaufman,
2015).
Marketing plan process.
Goal setting :
McDonald,s is best branch of the fast food services. Its main goal to achieve all market
and customer satisfaction. Involve customer need, requirement and customer satisfaction.
McDonald mission is the best quick services' restaurant. Customer favourite food place and way
to eat. Being the best means providing outstanding quality, services, and cleanlinesses.
Corporate objective: Its main aim to serve deciles and good food and great valve in a friendly
or joy full environment. Riding the food industry's in the current competition.
Analysing the current situation:
For market analysing McDonald does the market Audit. In this the firm make research
for the find market need and analysing. Current situation analysing the organization use SWOT
analysis(Huan and Thuong, 2016).
Strengths: global operation all the world. Cultural diversity in the food that are provided
based on location. Good and health food services. Food safety guidelines are strictly adhered.
Weakness: Training cost are high due to high turnover. Not much variation in seasonal
product is that are offered. Focus on burgs and grease fried food and not on health options for the
customer.
Opportunities: opening more joint venture with different retailers. Advertising the
capabilities of Wi-Fi and internet services. Continue to venture into more enticing beverage
choices.
9

Threats: lawsuit offering unhealthy foods that have alleged addictive additives.. the
west amount of eat in fast food restraint that are open as competition. Focus on healthier dieting
by consumers.
Segmentation, targeting and positioning
Segmentation can be defined as process of dividing people on the bases of specific
characteristics. Firm divides different consumers by considering their age, income, gender etc.
McDonald aims to expand its operations across the world. It implements demographic
segmentation strategy and also targets people on the bases of their age. It offers variety of foods
to kids, young people according to their requirements. This helps business in fulfilling needs of
people and enhancing their satisfaction level(Aghaei and et.al., 2014).
Targeting is the procedure through which company targets its consumers. McDonalds
takes support of differentiated targeting technique. It has wide range of products and services for
different consumers. Product, service, personnel, image differentiation are various strategies of
McDonald that helps in creating unique brand image of organisation. Effective positioning
strategy supports firms in enhancing its market reputation and gain competitive advantage.
McDonald implements cost positioning strategy that is beneficial for business in raising its
market image. By this way firm can gain more profit and can expand its operations successfully.
Budget
The marketing budget of McDonald is £25000. Entity will have to made several
expenditures in order to prepare this marketing plan and execute it.
Salaries £500
Marketing expenses £800
Fixed cost £1200
Total expenditures £2500
Monitoring and controlling
In order to monitor the entire progress marketing manager of McDonalds is required to
cross check it’s all activities and ensure the growth. Entity can implement test-marketing
10

strategy; it can market its new product for certain time. If response of public is positive then it
may continue with this plan. It has to take feedback from employees and consumers. This will
help in analysing effectiveness of existing marketing plan. By this way marketing manager of
McDonald will get to know improvement area and would be able to make necessary changes in
order to achieve goal of business unit(Rezaei, 2015).
11

CONCLUSION
The project report lays its complete focus on the essentials of marketing. The assignment
focuses on the fast food and beverage industry- Mcdonald's. The gist of this report is whatever
trends company is following in respect of marketing and how, it will going to be helpful for the
company. Complete process of marketing, that, how company plans his mission and implements
it for meeting out the needs and wants of ultimate consumer. Further, report includes various
roles and responsibilities of a marketing manager and effective relationship of marketing with
the various departments and how marketing influence them to achieve desired target.
12

REFERENCES
Books and Journals
Aghaei, M. and et.al., 2014. An examination of the relationship between services marketing mix
and brand equity dimensions. Procedia-Social and Behavioral Sciences. 109. pp.865-869.
Batabyal, D. and Mukherjee, S. K., 2016. Elitist Tag or Tool for Development: An Empirical
Analysis for Tourism Marketing Strategy in Sikkim. In Handbook of Research on
Promotional Strategies and Consumer Influence in the Service Sector (pp. 96-104). IGI
Global.
Cobb-Walgren, C.J. and et.al., 2017. Does Marketing Need Better Marketing? A Creative
Approach to Understanding Student Perceptions of the Marketing Major. e-Journal of
Business Education and Scholarship of Teaching. 11(1). pp.97-117.
Dogramatzis, D., 2015. Pharmaceutical marketing: a practical guide. CRC Press.
Durkin, M. and Perez, E., 2017. Examining SME engagement with local government clients: A
design school model for the marketing of digital transformation services. The Marketing
Review. 17(3). pp.259-281.
Huan, N. M. and Thuong, P. T. H., 2016. Marketing Solutions for Ho Chi Minh City Tourism
Development Until 2020. วารสาร วิจัย ม ทร. กรุงเทพ. 9(3). pp.39-46.
Järvinen, J. and Taiminen, H., 2016. Harnessing marketing automation for B2B content
marketing. Industrial Marketing Management. 54. pp.164-175.
Limón, A. T., 2018. MARKETING FAILURES AND FIXES. Journal of Financial Planning.
31(7). pp.22-26.
Lindquist, J. D., Lane, P. M. and Kaufman, C. J., 2015. Polychronic Behavior: Conceptually
Where are We and What are the Marketing and Consumer Behavior Implications. In
Proceedings of the 1991 Academy of Marketing Science (AMS) Annual Conference (pp.
27-31). Springer, Cham.
Meyer, R., 2017. Introduction to the journal of marketing research special section on field
experiments. Journal of Marketing Research. 54(1). pp.138-139.
13

Rezaei, S., 2015. Segmenting consumer decision-making styles (CDMS) toward marketing
practice: A partial least squares (PLS) path modeling approach. Journal of Retailing and
Consumer Services. 22. pp.1-15.
Rind, M. A., Subhpoto, N. A. and Sheikh, R. A., 2017. Marketing Information Products and
Services in the Libraries of Public Sector Universities of Jamshoro. Grassroots. 50(2).
Robles, F. and Hassan, S. S., 2015. Reaching Global Market Segments with Direct Marketing. In
Proceedings of the 1991 Academy of Marketing Science (AMS) Annual Conference (pp.
140-143). Springer, Cham.
Shankar, V., 2016. Mobile marketing: The way forward. Journal of Interactive Marketing. 34(1-
2).
14