A Literature Review of Marketing Strategies: McDonald's in Asia

Verified

Added on  2023/03/29

|13
|4428
|241
Literature Review
AI Summary
This literature review analyzes the marketing strategies employed by fast-food restaurants, with a specific focus on McDonald's within the Asian market. The research aims to understand how marketing strategies contribute to business success, examining the application of the 4Ps framework (Product, Price, Promotion, Place) and the STP framework (Segmentation, Targeting, Positioning). The review explores various strategies, including the use of digital marketing, social media, and consumer perception management. Key findings highlight the importance of marketing plans, promotional activities, and understanding consumer needs for achieving growth and maintaining a competitive edge in the fast-food industry. The review references multiple studies to support its analysis, emphasizing the significance of adapting marketing approaches to the specific dynamics of the Asian market.
Document Page
Literature Review
To analyze the marketing strategies of fast food restaurant in the Asian Market with a
focus on McDonald's.
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
Contents
Research Aim:.................................................................................................................................3
Research Objectives:.......................................................................................................................3
Research Hypothesis........................................................................................................................3
Introduction......................................................................................................................................4
Use of marketing strategies to achieve success in business............................................................5
Involvement of 4P’s framework in restaurant.................................................................................7
Use of STP framework....................................................................................................................8
Business strategies used by Mc Donald’s........................................................................................9
References......................................................................................................................................12
Document Page
Research Aim:
The aim of the research is to analyze the various strategies of marketing used in the fast-
food restaurant in the Asian market by using McDonalds.
Research Objectives:
This research includes various objectives, which are described below-
To achieve success in the business by using several marketing strategies.
To use the 4P’s framework in the business to achieve success.
To achieve better results in the marketing by using STP framework.
To use the business strategies in McDonalds for achieve success in market.
Research Hypothesis
H0- The marketing strategies are very essential in the restaurant business.
H1- The marketing strategies are not so essential for the restaurant business.
H0- The identification of marketing strategies is easier in the business of restaurant.
H1- The identification of marketing strategies is not easier in the restaurant business.
Document Page
Introduction
This review is based on several marketing strategies that are adopted by the fast-food
restaurant in the Asian Market. Nowadays, the fast-food sector is more global as compared to
other business in the Asian market.
Ohri-vachaspati, et. al., (2015) stated that the various products related to the restaurant of
fast-food are increased continuously. The fast-food restaurant is continuously increased its
business in the Asian market. The business needs the use of marketing strategies in their business
for continuously increasing the business process. McDonald's included as the effective
restaurants in the world and especially in the business of the Asian market.
According to Ehsan, (2012), marketing strategies are very essential in the overall process
of the business of a restaurant in any business market. In the business of fast-food restaurants,
products, and services as per the consumer interests and as per the health and safety of the people
that plays a vital role in the hotel industry.
Study of Lesser, et. al., (2012) found that McDonald's uses the best strategies to improve
their marketing perceptions and to increase the interests of the customers so that their business
increasing continuously in the market. The Asian market is more focused on this review, as this
is the most important market.
Further, Haghighi, et. al., (2012) highlighted that there is many of the strategies used in
the market of the restaurants to increase their business. As if one of the important marketing
strategies is to go social, make a proper and effective website so that customers get attracted to
the business. The organization does not need to leave out the e-mail marketing to make the
proper business and to increase profit. The business needs to reach out to local food bloggers and
influencers.
Beside this, Nigam (2012) commented on social media marketing that from it, business
improves a lot and increased in the Asian market or the world market. By this strategy of
marketing, the customer attracts towards the business and maintains the profit of the market.
Schwartz and Ustjanuskas (2012) found that the restaurant business has been transformed
in the advent of digital technology. Many of the restaurants get many advantages by using digital
media and it increases the overall business process and maintains the profit of the business. The
competition is also managed by using several marketing strategies and all the process of the
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
business gets proper manner by using the various methods. The social methods are the most
important process include in the marketing strategies to maintain the business activities and
business environment.
Use of marketing strategies to achieve success in business
Baltes (2015) founds that the marketing strategies are the most important part of the
business to achieve success at a very large level. The owners of the small business and other
restaurant businesses use several marketing strategies to adopt the success in the business. The
promotional and marketing strategies improve the skills of the business as well as the skills of
the employees. The various approaches can improve by using marketing strategies in the
business of fast-food restaurants.
According to Fan, et. al., (2015), the marketing plan of Mc Donald's is very effective that
it includes several marketing strategies so that the organization achieves proper growth in the
market. If the business does not have a marketing plan then the business cannot achieve the
proper growth in the market. The marketing plan involves various strategies of the market so that
it achieves more growth in the market. Several marketing strategies help the restaurant in
achieving the success of the business. The strategy of promotion helps the business in identifying
the target markets and maintains the goals of the markets. It gives immense success to the
organization. The McDonalds uses a proper marketing plan used for the growth and the positive
change in the organization of the restaurants.
From the viewpoint of Patrutiu-Baltes (2016), the strategy of markets is very necessary
for McDonalds to maintain the growth of the business as this process is very important for the
overall business organization and it improves the growth and progress in the restaurant market.
All the process of the business depends on the marketing mix and it offers all the activities of the
business. The marketing process all depends on the several functions of the business. Advertising
is the most important marketing strategy. As per the views of the marketing strategy includes
several strategic activities which includes the identification of consumer needs, responding to
consumers in the development of the products and create campaigns for the better response. All
these points are included in the strategic activities, which mostly includes in the business of the
restaurant business.
Document Page
Sturdy of Jarvinen, et. al., (2012) highlights the consumer needs are the most important
part of the business and the marketing strategies maintains the needs of consumer and help to
manage the perceptions of the consumers. The consumer needs includes the interest of the
consumers and it manages all the process of the organization. McDonalds always matter the
consumer perceptions and it increases the growth in the market by using the marketing strategic
activities and the views of Berthon, et. al., (2012), argued that the consumer needs can only be
maintained by the proper interest of the consumers the business of the restaurant achieves
success by using the marketing strategies and by these strategies all, the process of the business
becomes easier and helps in increasing the growth of the business. The strategies of the business
managed the interest of the consumers. The marketing strategies also create awareness among
the people and attract them towards the restaurant to choose the products and services. The fast
food restaurant becomes a global business and increases their market more and more.
Involvement of 4P’s framework in restaurant
Kim, et. al., (2015), the marketing mix is very important concept of the business and it
improves the overall business strategies and maintains the consumer’s decision regarding the
product or service. However, it has been argued that marketing mix can be implemented by using
several methods in the business. The 4p’s of marketing mix is a very important concept as it
includes the various concepts regarding the marketing strategies. The 4p’s of marketing mix are
product, price, promotion and place. These factors controlled the business process and maintain
the marketing strategy. The McDonalds uses the marketing mix strategy for improve the growth
of the business and attain many business strategies for the betterment of the business. This
concept helps the business to understand the product and service offerings and make a successful
strategy of marketing. But the author Liao, (2015), argued that the marketing mix is not only the
solution of the business growth but many other strategies is also important in the process.
Liao (2015), commented that 4P's framework can maintain several designing strategies
and used to promote the products and services. This model is very helpful in the marketing and
it affects the profit of the restaurant like McDonald's. The first P defines the product that includes
the physical goods of the organization like the eating products of McDonald's. The product needs
to be attracted so that the business can improve the overall business in the market.
Document Page
Amofah, et. al., (2016) stated that the product needs to have the attracting packaging
features, quality, design or support. The price is an important part of the marketing consumers
and it is critical to select the right price for the product or service. McDonald's uses the proper
strategy of the price, which includes the 4P's. The price of the product is not too high or not to
low so it is important to maintain the price of the product so that customers can attract towards
the restaurant. There is a number of pricing strategies that business employs.
According to the concept of the Issakvoa (2015), the price, the strategy is one of the
important strategies in the marketing ix process. The other 4p of the marketing mix is promotion
and it is a very important strategy used by McDonald has to communicate with the people
regarding the products and services. This is the process to tell the consumers regarding the
products and services. Promotion helps people to know deeply about the products and services.
This process can improve the overall process of the organization. Place defines the distribution
of the product and the distribution channels are the direct sales and wholesalers.
VLCKOVA, et. al., (2014) found that the marketing mix is the important process that is
used by the business and it increases the overall growth of the business organization especially
the business of fast food restaurant in the Asian market. The 4P's of the marketing mix is one of
the best strategies used by McDonald's to affect the increment of the business at some high level.
Use of STP framework
The study of Yan, et. al., (2014) emphasize that STP is one of the important framework
used in the marketing process of an organization like McDonalds. STP stands for Segmentation,
Targeting and Positioning. This process helps the marketers to increases the marketing process
and attracts the consumers towards the products of the organization. This approach is related
with the digital marketing, which is very much useful in today’s world. McDonalds uses this
approach for the marketing so it attracts the consumers towards the organization and increases
the overall profit of the business. As per the information gained, it has been analyzed that STP
manages all the business process but it is also argued that the STP sometimes decreases the
profit of the organization by including more money in manages segmentation, targeting and
positioning
According to the Rowe, et. al., (2016), this is one of the main marketing strategies that
increases the organizational profit and manages the overall strength of the business. This
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
approach is known as the customer approach in the marketing process. This approach sends
messages to the audience, which is relevant to the business. STP focuses on the valuable
segments and makes a proper marketing mix for the specific segments that have been identified.
Further, Venter, et. al., (2015), McDonald's uses the STP framework to select the
consumers that are relevant to the business. By using the segmentation, the consumer needs can
easily be identified by the business and they increase their consumers by the process of
segmentation. The segmentation is also used for finding new customers and it helps to focus on
effective products.
Riva, et. al., (2015), the targeting includes in the STP framework is used to select the
market for the betterment of the business. In the targeting process, many factors are involved
which are size, money, difference, and accessibility. To identify the target market, the market
needs to be large so that more consumers can be involved. McDonald’s uses this process to
identify the target market of the business so that the McDonalds have many consumers that are
relevant to their business only. The segments identified in the STP framework needs to be totally
distinct and proper identifiable.
Elfenbein, et. al., (2015) analysed that the money is also matters in identifying the target
market in the targeting process. Digital marketing has been included in the business by using the
STP framework. The economic systems have been involved in the money factor of the targeting.
The profits of the business have been involved in this process and it increases the profits by the
target market. The other factor of targeting is accessibility in which consumers can receive their
messages and gives their views regarding the business and their products.
According to Wang (2015), the customers included in the segments have the ability to
receive the marketing messages and the distribution networks that are very essential for the
business. The segmentation, targeting, and positioning are the main important factors that
manage the overall business and improve the growth of a business like fast food restaurants can
achieve profits by using this strategy of marketing.
Business strategies used by Mc Donald’s
From Brooks and Simkin (2012) perspective, various strategies help in determining
various approaches to develop business and other competitive advantages. McDonald's is the
largest food restaurant in the world and it makes the use of different types of intensive growth
Document Page
strategies for the growth, development, and expansion of the business. These strategies define the
aims and objectives of the company along with its operational activities and other economic
changes. Various strategies are adopted or formed by the business due to many variations in the
market. According to Muzellec, et. al., (2015), the restaurant uses the B2C model that is the
business to consumer, which is totally based on the transactions carried out in the organization.
This model includes the selling of the products direct to the consumers and improves their
business by making a proper relationship with the customers. The customers are treated as the
end users of the products. The commerce transaction can be included in the e-commerce. This is
the most popular strategy of the business and this strategy improves the profit of the business.
All the business transactions take place directly among the business and consumers. This is one
of the most popular sales models. B2C mostly referred to the restaurants, mall shopping, and
many more. This is very important in the process of e-commerce and it is primary medium of the
customers. This maintains the good relations with the consumers and it gives the better returns to
the organization.
McDonald, et. al., (2015) highlighted that the company's strategy explains the firm's
information. The intensive strategy of McDonald's determines to grow business in the fast-food
industry. According to Ashley and Tuton (2015), the several strategies can reach to more and
more customers. For this McDonald's has opened many new restaurants at various places by
different ways like joint ventures, corporate ownership methods etc. this can also be achieved by
the expansion of business through new locations. Kumar and Rajan (2012) stated that
McDonald's in its early period used the strategy of primary intensive strategy. Now it is used as
secondary intensive growth as a secondary strategy.
Further, Harrington, et. al., (2017) stated McDonald's uses the various marketing
strategies to develop their business as the organization focuses on the STP framework in a very
large manner and use this strategy in the purpose of the business. For managing the marketing
perspectives it has been determined that vision defines the process of that helps in achieving all
the goals. The other author argued that the B2C model is only relies on the hotel and restaurant
business.
Also, McDonald, et. al., (2015), commented that the vision of the organization is that the
purpose of business is what to sell. The positive force has been used by the organization for
Document Page
maintaining the business as well as the customers. The tagline also matters in the marketing
perspectives and the tagline of the organization is I'm Lovin It.
According to Boelsen-robinson, et. al., (2015), the organization uses several marketing
strategies like competitive advantage strategies to deal with the competition that is at a large
level in the market. The business can manage by using these strategies of the business.
This review has been concluded about the use of marketing strategies in the McDonald’s
organization and all these strategies are very useful in the overall process of the business. The
marketing strategies are very useful in the restaurant business or any other business so this
review has been described about the marketing strategies in detail. The 4P’s of marketing mix,
which are product, price, promotion and place, has been described in this report. The review has
been concluded about the STP framework, which is a useful strategy in the business. The B2C
model has been used in the organization as a business strategy and this strategy has been defined
in this review.
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
References
Amofah, O., Gyamfi, I. and Tutu, C.O., 2016. The influence of service marketing mix on
customer choice of repeat purchase of restaurant in Kumasi, Ghana. European Journal of
Business and Management, 8(11), pp.102-112.
Ashley, C. and Tuten, T., 2015. Creative strategies in social media marketing: An exploratory
study of branded social content and consumer engagement. Psychology & Marketing, 32(1),
pp.15-27.
Baltes, L.P., 2015. Content marketing-the fundamental tool of digital marketing. Bulletin of the
Transilvania University of Brasov. Economic Sciences. Series V, 8(2), p.111.
Berthon, P.R., Pitt, L.F., Plangger, K., and Shapiro, D., 2012. Marketing meets Web 2.0, social
media, and creative consumers: Implications for international marketing strategy. Business
Horizons, 55(3), pp.261-271.
Boelsen-Robinson, T., Backholer, K. and Peeters, A., 2015. Digital marketing of unhealthy foods
to Australian children and adolescents. Health promotion international, 31(3), pp.523-533.
Brooks, N. and Simkin, L., 2012. Judging marketing mix effectiveness. Marketing Intelligence &
Planning, 30(5), pp.494-514.
Ehsan, U., 2012. Factors important for the selection of fast-food restaurants: an empirical study
across three cities of Pakistan. British Food Journal, 114(9), pp.1251-1264.
Elfenbein, D.W., Fisman, R., and McManus, B., 2015. Market structure, reputation, and the
value of quality certification. American Economic Journal: Microeconomics, 7(4), pp.83-108.
Fan, S., Lau, R.Y. and Zhao, J.L., 2015. Demystifying big data analytics for business intelligence
through the lens of marketing mix. Big Data Research, 2(1), pp.28-32.
Haghighi, M., Dorosti, A., Rahnama, A. and Hoseinpour, A., 2012. Evaluation of factors
affecting customer loyalty in the restaurant industry. African Journal of Business
Management, 6(14), pp.5039-5046.
Harrington, R.J., Ottenbacher, M.C. and Fauser, S., 2017. QSR brand value: Marketing mix
dimensions among McDonald’s, KFC, Burger King, Subway and Starbucks. International
Journal of Contemporary Hospitality Management, 29(1), pp.551-570.
Issakova, A., 2015. Marketing Mix of the Hotel (Doctoral dissertation, Vysoká škola hotelová v
Praze).
Järvinen, J., Tollinen, A., Karjaluoto, H. and Jayawardhena, C., 2012. Digital and social media
marketing usage in B2B industrial section. Marketing Management Journal, 22(2).
Document Page
Kim, S., Koh, Y., Cha, J. and Lee, S., 2015. Effects of social media on firm value for US
restaurant companies. International Journal of Hospitality Management, 49, pp.40-46.
Kumar, V. and Rajan, B., 2012. Social coupons as a marketing strategy: a multifaceted
perspective. Journal of the Academy of Marketing Science, 40(1), pp.120-136.
Lesser, L.I., Hunnes, D.E., Reyes, P., Arab, L., Ryan, G.W., Brook, R.H. and Cohen, D.A., 2012.
Assessment of food offerings and marketing strategies in the food-service venues at California
Children’s Hospitals. Academic pediatrics, 12(1), pp.62-67.
Liao, H., 2015. Websites marketing strategy of travel agency using an integrated theory of 4C
and 4P. Management & Engineering, (20), p.96.
McDonald, R.E., Weerawardena, J., Madhavaram, S. and Sullivan Mort, G., 2015. From
“virtuous” to “pragmatic” pursuit of social mission: A sustainability-based typology of nonprofit
organizations and corresponding strategies. Management Research Review, 38(9), pp.970-991.
McDonald, S., Gan, B.C., Fraser, S.S., Oke, A. and Anderson, A.R., 2015. A review of research
methods in entrepreneurship 1985-2013. International Journal of Entrepreneurial Behavior &
Research, 21(3), pp.291-315.
Nigam, D.A., 2012. Modeling relationship between experiential marketing, experiential value
and purchase intensions in organized quick service chain restaurants shoppers using structural
equation modeling approach. Paradigm, 16(1), pp.70-79.
Ohri-Vachaspati, P., Isgor, Z., Rimkus, L., Powell, L.M., Barker, D.C. and Chaloupka, F.J.,
2015. Child-directed marketing inside and on the exterior of fast food restaurants. American
journal of preventive medicine, 48(1), pp.22-30.
Patrutiu-Baltes, L., 2016. Inbound Marketing-the most important digital marketing
strategy. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, 9(2),
p.61.
Riva, F., Zuccato, E. and Castiglioni, S., 2015. Prioritization and analysis of pharmaceuticals for
human use contaminating the aquatic ecosystem in Italy. Journal of pharmaceutical and
biomedical analysis, 106, pp.71-78.
Rowe, H., Withers, P.J., Baas, P., Chan, N.I., Doody, D., Holiman, J., Jacobs, B., Li, H.,
MacDonald, G.K., McDowell, R. and Sharpley, A.N., 2016. Integrating legacy soil phosphorus
into sustainable nutrient management strategies for future food, bioenergy, and water security.
Nutrient cycling in agroecosystems, 104(3), pp.393-412.
Schwartz, M.B. and Ustjanauskas, A., 2012. Food marketing to youth: Current threats and
opportunities. Childhood Obesity (Formerly Obesity and Weight Management), 8(2), pp.85-88.
Muzellec, L., Ronteau, S. and Lambkin, M., 2015. Two-sided Internet platforms: A business
model lifecycle perspective. Industrial Marketing Management, 45, pp.139-150.Venter, P.,
Document Page
Wright, A. and Dibb, S., 2015. Performing market segmentation: a performative
perspective. Journal of Marketing Management, 31(1-2), pp.62-83.
VLCKOVA, V., LOSTAKOVA, H. and PATAK, M., 2014. Selected problems arising within
cluster analysis usage for market segmentation. In 23rd International Conference on Metallurgy
and Materials, METAL.
Wang, C.H., 2015. Integrating Kansei engineering with conjoint analysis to fulfil market
segmentation and product customisation for digital cameras. International Journal of Production
Research, 53(8), pp.2427-2438.
Yan, Y.K. and Yazdanifard, R., 2014. The concept of green marketing and green product
development on consumer buying approach. Global Journal of Commerce & Management
Perspective, 3(2), pp.33-38.
chevron_up_icon
1 out of 13
circle_padding
hide_on_mobile
zoom_out_icon
logo.png

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]