Marketing Essentials: McDonald's Marketing Plan and Strategy Report

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This report provides a comprehensive analysis of McDonald's marketing strategies, examining the marketing concept, current and future trends, and the marketing process. It delves into the roles and responsibilities of a marketing manager within McDonald's, exploring the influence of marketing on other functional departments like operations, finance, and HR. The report highlights the value and significance of marketing for McDonald's, including its impact on sales, brand awareness, and trust. A comparison between McDonald's and JW Marriott is provided, focusing on elements of the marketing mix. Finally, the report evaluates and proposes a marketing plan for McDonald's, offering insights into effective interrelationships among different functional departments to achieve strategic objectives. The report also discusses the importance of adapting to changing consumer needs and maintaining a competitive edge within the fast food industry. This report showcases the integration of marketing principles within a real-world business context.
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UNIT 2 MARKETING
ESSENTIALS
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Marketing concept with current and future trends.......................................................................1
Overview of marketing process...................................................................................................1
3. Role and responsibilities of marketing manager .....................................................................2
4. Explaining influence of marketing along with interrelationship of other functional
departments..................................................................................................................................3
5. Value and significance of marketing in McDonald ................................................................4
6. Concluding importance of effective interrelationship among different functional
departments..................................................................................................................................5
7. Providing comparison among organization with elements of marketing mix to process .......5
8. Evaluating and producing marketing plan for McDonald ......................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
Effective marketing is very important for every organization to attain success and unique
position in its industry. The present report will give brief discussion about concept of marketing
with current and future trend. In the similar aspect it will elaborate marketing process and role
and responsibilities of marketing manager with context of McDonald. Further it had shown
marketing plan for creating value and to build strong relationship.
Marketing concept with current and future trends
The marketing concept is considered as belief which organization should analyse
requirements of customer for making various rational decisions for beating its competitor for
purpose of satisfying these need. Numerous organizations has adopted this particular idea for
attaining its goals. There are different concepts of marketing are production, product, selling,
marketing and societal marketing concept. It is replicated as a principle where firm competes in
producing qualitative products along with method of direct communication to its customers
along with availability of particular products with their prices. In the present scenario, consumer
is replicated as king as this concept has presence of 4 pillars such as needs of clients, target
market, integrated marketing and profitability (Dileep and Mathew, 2017).
The current trend of marketing is mix of past trends which are improved like
advertisements on television and print along with innovative strategies which are laying special
emphasis on inbound practices. The common marketing tactics or present era are social media
marketing. Text messages and internet video advertisements, retargeting campaigns and targeted
emails. The future trend of marketing says that everything will be customised and marketing will
be not unique and efforts of inbound marketing will be preventable with establishment of
targeted audience. This trend will be continued with technology growth and access will be easy
with increment of services and products.
Overview of marketing process
The marketing process is considered as procedure of analysing different opportunities in
market, choosing target markets and further with development of marketing mix and
management of marketing efforts. With context of marketing concept, the business entity must
be capable for finding a way for purpose of discovering unfulfilled requirements' of consumer
and to bring to product of market for satisfying those particular need. This process has four steps
which are mentioned below:
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Situation Analysis
Marketing strategy
Marketing mix decisions
Implementation and Control
Situation analysis: It is an analysis of particular situation where business entity will
serve itself for determining opportunities for satisfying requirements of consumer. Along with
this, understanding are gained related to capabilities and environment where it is operating.
Marketing strategy: The strategic plan for purpose of pursuing opportunity could be
developed and market research would be giving information about specific market and it will
permit the organization for selecting segment, target and positioning (Eletxigerra, Barrutia and
Echebarria, 2018).
Marketing mix decisions: There is presence of detail tactical decisions which is
prepared through controllable parameters related to marketing mix. It considers action items such
as product development, distribution contracts, pricing decisions and development of
promotional campaign.
Implementation and control: There is development of marketing plan for launch of
product. There are different environment which are static and outcome of marketing effort must
be monitored. The process of marketing is not last step for implementation, there is requirement
of adaption and continual monitoring for fulfilling consumer needs in consistent aspect for long
term.
Functional strategy: McDonald's functional strategy comprises various sequences of
decisions which are over time and has enabled business unit for attaining desired operations'
infrastructure, operations along with set of potential capabilities and provides support to
competitive priorities.
3. Role and responsibilities of marketing manager
The main duty of marketing manager is laid with individual team member or it might be
responsibility of whole group. This manager has responsibilities for execution and development
of different marketing initiatives and projects for McDonald's. The individual has expectation for
deploying and developing best practices and marketing tactics along with creating various
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actionable insights of different drivers of consumers and markets. There is continuous
improvement related to demand market intelligence and customer communication in effective
aspect. It could be evaluated that marketing manager is voice of its consumer for appropriate
segment and to create connectivity is McDonald. Its role could be categorised in market insights,
on-trend solutions and customer understanding.
Marketing insights: McDonald's manager follow and analyse food and beverage
industry of United Kingdom. It determines opportunities for growth with application of its
insights given through group marketing and closely follows market development for ingredient
portfolio. It gives recommendations on basis of proper data and insights (Perera And Perera,
2018).
On trend solutions: The understanding of various customer need and to transform
insights are driven. The marketing material and sales tools has been created such as presentation
of trend, product launch and market insights.
Customer understanding: The utilization on consumer insights are ensured with helps
of sales team. The activation of customer requirements have determined growth opportunities
with appropriate understanding on business and consumer needs.
4. Explaining influence of marketing along with interrelationship of other functional departments
Every function of business must interact in harmony aspect for pursuing overall
objectives of McDonald. The interrelationship has been characterized from deep rivalries along
with distrust. The function of marketing is carried with specialised department and it should
permeate McDonald. Generally, marketing function is carried with specialised department as
nature of other functional organization reflects potential conflict among various functional areas
for delivering corporate plan.
Operations management/ production: There is huge requirement of marketing
department to perform closely with production department for ensuring about adequate
research and development is directly planned for purpose of satisfying future and current
needs of consumers. Manufacturing of item to specification about quality and design. It
provides products are affordable along with serving prices and size of product on basis of
popular expectations of consumer. Its process and design capacity is centred for
efficiency of cost minimization which supports to strategies of organization. In the
similar aspect, it has global supply chain supports on numerous location around world. It
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has presence of supply chain diversification for purpose of decision area of managing its
operations.
The marketing department would be setting deadlines which might stretch
production department capabilities. Marketers will wish for marketing products in market
as soon as possible for ensuring competitive advantage.
Finance department: The marketing department is associated with finance department
of McDonald as an adequate budget for accomplishing requirements of distribution,
research and promotion.
The brief of whole firm is with finance department as it ensures about operations
within financial capabilities. The marketing department of McDonald concentrates on
volume of sales and to build market share but finance department lays special emphasis
on covering cost, cash flow and payback investment.
HR department: The HR professionals has entire information about its internal
customers as information has been disseminated to customers which are creative and
upbeat of message along with high receptive employees which might be to the content.
HR staff members has attempted for grabbing attention of employees and motivating to
act.
5. Value and significance of marketing in McDonald
Marketing creates close association among brands and people on basis of needs of
customer, personal values and social status. McDonald belongs to fast food industry as it is
considered as excellent marketing business in world (Wu and et.al., 2017).
Increment in awareness: It is replicated as very important for attaining success as with
context of advertisement or to get suggestion but product has been not purchased with
application of services. With increment in awareness among marketing of McDonald, it builds
audience of specific consumers with offering or to extract about information about consumer to
buy services or product.
Increment in sales: McDonald is well known brand in food and beverage industry as it
has huge sales, but advertisement helps in increasing sales. With existence of business, the
people who get to know about then they become consumer. In case marketing campaigns are
performing job in appropriate aspect then it will impact in increment of sales.
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Creation of trust: Trust is very important aspect for business and especially in food
industry such as McDonald. Generally, people purchase through business along with trustworthy
reputation. The consumers want to gain information about business to whom they can trust. It
always takes time for building reputation and trust. McDonald has established trust among its
consumers but indirectly it has need of consumer loyalty as well.
In the present scenario, there is presence of different marketing tactics which helps in
attaining potential consumers, but it is appropriate to have combination of offline and online
marketing in McDonald.
6. Concluding importance of effective interrelationship among different functional departments
The effective interrelationship among various functional department has been understood
through function of strategies which might be differentiated through various business strategies.
It had been concluded that time horizon of functional strategy is short and these are determined
and coordination of short term action. It had been articulated that functional strategy is very
specific as compared to business strategy. It gives general direction as it provides guidance to
managers of McDonald to be responsible for attaining annual objectives (Loo and Leung, 2018).
Further, it could be evaluated that business entity varies in responsibilities of functional areas but
on contrary, major functional areas are directly purchasing along with material management,
human resources, R&D and information system management. Moreover, whole strategic success
has been required with each functional activities are integrated with generic strategy of business
unit.
7. Providing comparison among organization with elements of marketing mix to process
McDonald and JW Marriott both comprise in hospitality industry as they have huge
presence in United Kingdom. The below tabular is giving appropriate comparison with context
of elements of marketing mix.
Elements of
marketing mix
McDonald JW Marriot
Product It is considered as leading fast food
restaurants in world and especially in
UK it is very popular in hospitality
industry. On the initial stage, it sells
burgers, fries, chicken, snacks,
It is a famous and well known hotel
comes in hospitality industry. It offers
numerous services such as meeting,
special event services, wedding and
banquet facilities, food and beverage
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breakfast and sandwiches even desert
and shakes. It has given various
variety such as Egg McMuffin,
Double quarter pounder with cheese,
Hot Fudge sundae, Cheeseburger,
McCafe. It has set competition with
various companies as it also
customized order with different
option.
services, swimming pools, gift shops
and various other luxury services. The
core product of hotel is its rooms
where consumers live for temporary
duration. Priorly, it was among best 5
star hotels but in present scenario, it is
facing various competitors. JW
Marriott is trying to improve its
facilities for purpose of attracting new
consumers. It has started providing
innovative facilities to business people
such as mobile phones (Scott and
et.al., 2018).
Price There are various companies who
uses wide range of techniques of
pricing for selling its products
(Mahadevan, 2018). The value
pricing, price discrimination, cost
plus pricing, loss leader and going
rate are considered as popular pricing
techniques. McDonald's objective is
to give food to its consumers ate
competitive value. As prices directly
vary among different restaurant of
McDonald as per numerous factors.
It uses franchise model and offers
competitive value but pricing of
franchisee is not prescribed because
they have authority to set own price
structure.
JW Marriott has it reputation from 1st
class society or top class with context
of numerous amenities along with
adoption of premium pricing policy.
Its main objective is to upscale its
services. The expertise team is highly
dedicated and its researchers took
different approaches of decision
related to pricing. This hotel only
provides its services to top level
consumers as they believe in
appropriate sense of staying along
with the best consideration of status
and luxury.
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Place Place is replicated as distribution.
These strategies are method through
which organization receives its
product for its consumers. With
context of McDonald, it has different
strategies of distribution in various
countries. The most special thing
about McDonald is that it gives
home deliveries in many countries
and they are serving services by
24/7. Further, it is replicated as best
example for intensive distribution
which makes availability of product
for sale with possibility of different
distribution channel.
It has followed distribution strategy
with presence of availability of its
services and product on basis of
preference of consumer. JW Marriott
give huge reliance on internet and
technology in various other formats.
The official website of this hotel is
serving an efficient platform for
service distribution process and
supply of broad range of its
characteristics and capabilities for
providing practical assistance to
particular customers such as event and
wedding plans, booking room along
with scheduling booking.
Promotion The advertisements of McDonald are
highly notable in its tactic of
promotion. In the similar aspect, it
uses newspapers, internet, television,
magazines and outlet of other media
to communicate with its consumers.
It also uses sales promotion
techniques such as freebies for
certain products and discount
coupons as well.
JW Marriott have chosen different
activities of promotion for attaining
unique position among hospitality
industry. This 5 star hotel gives
exclusive membership to its particular
or esteemed customers.
People With context of UK and Ireland,
more than 97000 people are
employed with McDonald. In the
similar aspect, more than 50%
restaurants are operated by local
The reputation of JW Marriott is
associated to people. There should be
appropriate training of its personnel
and must be capable for ensuring
about right people for right job. There
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people in UK. Generally they invest
£40 million with purpose of
employee development and training
in per year. The main aim to discuss
about people is associated with
marketing mix by addressing issues
which prioritize both employees and
consumers. There is presence of
indirect link among employees and
consumers, if employees will be
happy then they will keep consumers
happy and vice versa situation.
Hence, it is very important for
business entity for devising proper
strategies for addressing the
requirements of both consumers and
employees as well.
are different consumers who does not
segregate various kinds of product as
they are directly purchased via
personal selling.
Process It is directly referred as set of
activities for accomplishing its goals.
McDonald has undertaken different
activities for delivering its particular
product to its customers. Just as an
example, the important activity is
food preparation in whole process so
it is transparent such as visibility of
whole process to its customers.
JW Marriott has directly developed a
website where it undertakes online
booking and reservation system. It
helps in gaining capability of saving
money and time of customers. It will
lead to customer satisfaction in
efficient aspect.
Physical
evidence
It is last element of marketing mix
which is associated to its visitors
along with customer experience. The
physical evidence has directly
It will be demonstrated via
organization along with capability for
getting confirmation about assertion
of customer.
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impacted along with impressions of
consumers of restaurant as the
function of McDonald. Its interiors
are very attractive and restaurant had
maintained hygienic and clean
interior of its specific outlets.
8. Evaluating and producing marketing plan for McDonald
Overview
McDonald is food retail organization as biggest food chain with accomplishment of
global acclaim through its clients with context of diverse communities. This brand is considered
as market leader in fast food restaurant and appropriate maintenance of market diversification via
various kinds of food. In the present scenario, it is looking for setting franchises in other cities so
that it could achieve good customer base ad gain high profit.
Objective
To analyse eating habits of its consumers for providing easy accessibility of its services
and products.
To increase it sales from 15%.
To build strong relationships from its customers for attaining its requirements.
STP Analysis
Segmentation The products of this brand are given for every type of people whether he is
businessmen, corporate, young and old generation as well.
Target With context of people, food chain is replicated as best solution for ones
who are working. The availability of food at cheap rate and marketing
campaigns for rich, middle and low class families.
Positioning It provides various products for high number of clients almost in every
region. McDonald is looking for promotion with implementation of
marketing campaign to create values for customer.
Market Analysis
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SWOT Analysis
Strength
It has worldwide presence with high
effect on its consumers.
It is considered as market leader in
international and domestic market as
well.
Appropriate application of economies
of scale for purpose of strategies of cost
reduction (SWOT Analysis, 2018).
Weakness
It has product diversification in limited
aspect which does not impact the
business.
Dependency on western market is
declining.
Limited process of flexibility
Opportunities
It could get combination of business
along with retailers.
It should lay special focus on its
expansion in various developing
countries.
Product diversification must be highly
considered.
Threats
It faces aggressive competition.
Growth in trend of healthy lifestyles.
PESTLE Analysis
Political
Increment in international trade
agreements
Evolution of various public health
policies
Guidelines through government for
health and diet (PESTLE Analysis,
2018).
Economic
The developing countries are growing
with rapid growth
The growth of developed countries is
slow or stable.
Chinese economy is facing slowdown.
Social Technological
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Disposable income is rising
Increment in cultural diversity
The lifestyles of urban environment is
very engaged.
Trend of healthy lifestyle
Increment in automation of business
Moderate R&D activity
Increment in sales with context of
mobile devices
Legal
Legal minimum wages are rising
Increment in regulations of animal
welfare
Health regulations are raising in
schools and workplaces
Environmental
Alterations in climate conditions
Increment in interest for environmental
programs of corporate
Laying special focus on strategies of
sustainable business.
Marketing mix
Elements Description
Product It provides wide range of food products such as soft drinks, fruit juices,
McCafe, McChicken burgers, French fries, Cheeseburger, Hash Browns,
Egg McMuffin.
Price It would be using price penetration where it will set prices at less cost and
after publicity and taste it will set prices with context of competition.
Place It would be using intensive distribution with availability of 24/7 services
with various distribution channel.
Promotion The marketing will be focussing on direct connection from consumers and
to make it as personal. It would be launching marketing campaigns and
integrated marketing program for delivering customer value (Zhang,
Cheung and Law, 2018).
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CONCLUSION
From the above study it had been concluded that marketing is very essential for every
organization. It had been articulated on basis of McDonald in this report. This report had shown
that by launching various marketing campaigns helps in creating value. In the similar aspect, it
will be effective step for accomplishing success and to fulfil objectives.
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REFERENCES
Books and Journals
ONLINE
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