Hospitality Marketing Essentials: McDonald's Marketing Analysis Report

This report provides a detailed analysis of McDonald's marketing strategies, encompassing key aspects such as the roles and responsibilities of the marketing function, the marketing mix, and the development of a comprehensive marketing plan. The introduction highlights McDonald's global presence and its focus on customer satisfaction. The report delves into the key marketing concepts, including production, selling, and societal marketing concepts. It examines current and future marketing trends, such as the integration of technology like augmented reality, virtual reality, and artificial intelligence. The report outlines the four steps of the marketing process: situational analysis, marketing strategy, marketing mix decisions, and implementation and control. It then explores the key roles of marketing functions, including marketing planning, product design, and competition analysis. The report also examines how marketing interrelates with other organizational functions, such as finance, research and development, production, and human resources. Furthermore, the report analyzes McDonald's marketing mix in comparison to its competitor, Burger King, focusing on product, price, place, and promotion strategies. The report concludes with an overview of the marketing plan for McDonald's, providing a comprehensive understanding of its marketing approach.

Hospitality Marketing
Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of marketing function............................................................1
P2 How roles and responsibilities of marketing related to organizational function...................4
TASK 2............................................................................................................................................5
P3 Marketing mix........................................................................................................................5
TASK 3............................................................................................................................................7
P4 Marketing plan for company..................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing refers to the process of creating relationship with customers by satisfying their
needs and wants. In business organisation, marketing is one of the primary component through
which company promote their services in market with the aim of inviting more and more
consumers towards its services. Mainly, it includes various activities such as adverting, selling,
promoting and delivering products to potential customers to attain their higher satisfaction
(Rahimi and Akgunduz, 2017). With the help of this, company can easily increase their
profitability level and also capture larger market share from its rivals. Current report is based on
McDonald, is famous restaurant operate their business globally for generating larger profitability
level. It founded by Richard and Maurice McDonald in 1940 for serving best quality products in
market place. The main purpose of this company is to invite more and more customers by
delivering best food products. In this regards, report is going to discussed about roles of
marketing function that help company in attaining set marketing goals and objectives. Along
with this, marketing mix is also discussed in this project that support business in increasing their
profitability. Marketing plan for organisation is also mentioned that assist in attaining
competitive image at market place.
TASK 1
P1 Key roles and responsibilities of marketing function
In present time, marketing can be defined as an effective approach, which helps a
company in promoting products and services within the business market. This type of department
mainly helps business company in providing customers with all the details in regards to the topic.
With the help of this, function a firm could effectively enhance it's sales and number of
customers as well (Lee and others, 2019). If it is talked about, McDonald's marketing function
then this is one of the department that is helping them in advertising, selling and delivery of
products and services to customer and to other businesses as well. There are several marketing
concepts which have been evolved to develop an understanding of marketing, are mentioned
below:
Production Concept: This is the earliest concept which consider that organizations
should focus on providing easily available and highly affordable products and services to its
customers rather than focusing on competitions.
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Selling Concept: Selling concept is responsible for accelerating advertisement and
promotional activities within the market. This concept holds the idea that consumers will buy
those products and services which have large-scale promotion and selling efforts.
Societal Marketing Concept: Societal marketing concept is a modern approach of
marketing that consider profitability of the company, customer satisfaction and well-beingness of
the society as well. It refer that company should provide quality products and services that can
fulfil customer needs along with long-run welfare of the society.
In this context, it has been found that there are some of current and future trends that are
present within marketing and some of them are mentioned underneath:
Future marketing trends – At present, most of the work is being done with the help of
technology and this is also improving everyday. It has been found that, future marketing trends
will be moreover linked to augmented reality, virtual reality along with live videos as well,
which will help firm in enhancing the number of customers, if these technology will be
considered in near future (Gurung, 2016). Including this, artificial intelligence will also be taken
in use within marketing department by companies like McDonald's, which will help them in
sustaining within the market for a longer period of time.
Current marketing trends – In present time, mostly business organisations are using
combination of both current and previous trends and these are printing, billboards, TV ads and so
on. with some new strategies focus on inbound practices. There are some common present
marketing trends such as social media, targeted Emails, text message advertising, retargeting
campaigns and internet video advertisement.
Overview of different marketing processes:
There are four steps are included in marketing process which are presented below:
Situational Analysis: A situational analysis includes the identification of various
opportunities which are related to the company, customers, competitors and climate. It is
required to analyse the organizational capabilities and competencies.
Marketing Strategy: This step includes the planning of effective strategies to fulfil
customers desires and requirements. It includes segmentation, targeting and positioning of the
marketplace.
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Marketing Mix Decision: Marketing mix is a balancing combination of several elements
that are related to the marketing of organizational products and services (Lin, Chiang and Wu,
2018).
Implementation and Control: At this last stage, when the products and services has been
launched, the organization needs to implement some changes that are required to increase the
performance and have to take a control over various marketing activities.
Key roles and responsibilities of marketing function:
In a business organisation, marketing is an important function that support in spreading
the awareness of company in market place. In this, the main focus of marketing is to promote or
advertise products that encourage customers to buy the same as per their needs and wants. By
implementing marketing function within the operational activities, McDonald's easily analysis
customers requirements with the hope of providing them higher satisfaction. It positively impact
on overall performance of company and make it more competitive. As there are some roles and
responsibilities of marketing functions:
Marketing planning: It is important role of marketing in which company is
responsibility to make an effective planning about all the activities perform by organisation to
promote their services in market. In this, marketing manager decide who will do what, when and
how to increase their profitability by offering best quality products and services. As per their
entire activities can be done so that profit can be maximize at market place (Negri and Vigolo,
2015).
Product designing and development: For increase sales, product designing is play a
crucial role in which company focus on developing best quality and attractive products. This will
contribute in attaining competitive advantage from its rivals. Marketers of McDonald needs to
develop and change the products regularly according to the customer requirements.
Face competition: Marketers have to face competition for survival of the organization
into the market. Marketing plays a significant role in developing strategies to defeat the
competitors along with the responsibility of encouraging strong and fair competition within the
marketplace. The marketing department of the selected company is responsible for identify the
qualities of competitive products and services and give a tough competition to the rivals.
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P2 How roles and responsibilities of marketing related to organizational function
In an business organization, every department and its function are related with each
others as it also help in attaining all the set goals and objectives in stipulate time frame. In this
regards, marketing is consider as an crucial activity within the company that focus in spreading
the awareness in market place with the aim of inviting more and more consumers over there.
Mainly, marketing used as a promoting tool within the firm through which McDonald's promote
their products in market place for enhancing their profitability level. For serving best quality
services, marketing department and other organisational functions are perform their activities
with each other. With the assistance of this, company easily improve their overall performance
and productivity level. For better understanding, there are marketing department influence and
interrelated with other functional departments:
 Marketing and financial department: Proper fund is important for every section to
execute their activities in successful manner. In this finance department provide enough
fund to marketing for organizing promotion campaign. By this marketing division of
McDonald's can easily promote their services in market place to invite more and more
consumers. This will directly contribute in increasing sales and profitability level as well.
 Marketing and research and development: The main focus of marketing department is
to introduce new and innovative products in market place in which research department
undertake investigation to analyse whether the new products will be successful in market
or not. It help marketing department to maximise their overall profitability level at market
place (Ba and others, 2019).
 Marketing and production department: The main focus of McDonald's is to satisfy
customers demand and expectations. For attaining the same, marketing department
analysis consumers demand towards its offerings and provide all the information to
production department. By this manufacturing division produce quality products as per
their requirements. With the assistance of this, company may increase their profitability
level by minimizing wastage from production process.
 Marketing and human resource department: Both are interrelated with each other as
marketing department advertise vacant place within the company with the hope of
inviting skilled and capable workers at workplace. By this, HR department can easily
recruit the same as per their activities and policies s well. With marketing department,
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human resource department can not be able to find best candidates towards their vacant
place. By this, company can accomplished their set goals and at the same time also
improve their performance level (Morong, Kariuki and Bitok, 2018).
TASK 2
P3 Marketing mix
Marketing mix is important model for company as it includes multiple areas which assist
in attaining all the set goals and target in stipulated time frame. Mainly, all the components of
marketing is controlled by company to influence customers to buy its products. By using
marketing mix, McDonald can increase product demand in market and at the same time also
increase its profitability level. For better understanding, marketing mix of McDonald and its
competitors can be understood by following points:
Basis McDonald Burger King
Product McDonald is famous British
company that offer variety of
products in market with the aim of
increasing their profitability and
customers satisfaction as well. The
main focus of this company is to
provide best quality of food
products to its customers. Primarily
company sells chicken products,
breakfast items, hamburgers, soft
drinks, fish wraps and many more
to its customers as per their taste
and preferences.
Burger King is offer different
products to their customers as per
different age groups. As they has
wide offerings like potato fries,
milkshakes, burgers and so on.
Along with this, company serve
both veg and non-veg categories to
its customers to attain their
satisfaction (Li, 2018).
Price It is one of the important aspect for
company to set products price
effective so that customers get
attract towards the same. Mainly,
McDonald use price bundling
Burger King follow market
oriented and bundles pricing
strategy for serving their products.
Due to high competition with
McDonald, company ficus on their
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strategy in which they offer
bundling products with meals and
other products to its customers in
order to attain their higher
satisfaction.
product quality with affordable
prices.
Place McDonald serve their products in
around 110 countries and also
operate more than 36000 restaurant
in over the world. Along with this,
company also use digital ordering
and offered free mobile charging to
its customers. It may aid in
increasing the demand of products
and services.
Company has strong supply chain
network in over the world as they
serve their products in different
countries. For increasing their
profitability of customers base,
company also developed their
websites, mobile application on
which customers easily consume
its products as per their
requirements.
Promotion McDonald has spent huge fund on
their advertising activities as they
make use of billboard, newspaper
ads and many more. Along with
this, company also give
advertisement on TV in order to
influence customers to buy its
products and increase its
profitability.
For promoting their products in
market place, Burger King give
advertisement in newspaper,
hoardings, magazines and so on
that help in increasing demand of
the products in market place.
Company also publish their
products digitally in inviting more
and more customers.
People McDonald invest more money in
employee training and development
which help them in delivering best
quality services to its customers. If
employees are motivated and well
trained than they happily handle
The main focus of Burger king on
its customers and employees, as
they provide better training
programs to their employees so
that they can effectively handle
their customers and also take care
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their consumers (Makera, 2018). of their satisfaction as well.
Physical evidence Under this, company includes
attractive layout and ambiance in
which customers feel fresh. Along
with this company interior is also
attractive that influence customers
towards its offerings.
Company has around 15000
location in 71 countries in which
they offer their services. Along
with this, company also open their
canteens in shopping malls which
influence customers to buy its
products.
Process McDonald includes effective food
production tat help them in making
quality products as per customers
demand. Along with this, it also
includes how customers place their
order and how long they wait for
their food items.
As company operate their business
at global level then they includes
maintained of taste, work culture,
customers satisfaction, supply
chain and many more. Through
which they easily satisfy customers
demand by providing them
products accordingly.
TASK 3
P4 Marketing plan for company
Marketing Objectives: In order to start the process of preparing a plan for marketing,
the marketers of the McDonald need to decide marketing objectives. These objectives may be
related to the sales growth, customer relations, penetration or expansion of the market, etc.
Marketing objectives and aims will provide the motive to develop solid marketing plans
(Gogoski and Naumov, 2018). In context with the selected company, the objectives which are
decide by the establishment are presented below:
 Expand the market by providing franchisees to remote global countries.
 Increase the sale by 15% in current markets within the 6 months.
 Increase customer satisfaction of the customers and collecting positive feedback from
them.
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Marketing Strategies: The next step which have to be taken in the process of marketing
planning is to develop strategies for achieving decided marketing objectives. In order to develop
efficient and effective marketing strategies, marketers need to follow some activities or tasks that
will help them in understanding market situations, trends and customer needs. The main three
tasks that have to be completed by the marketing team of McDonald are as given below:
Segmentation: Segmentation is the process of dividing or separating the current and
potential market or the customers into different parts or segments that may be based on various
factors such as demographic, geographic, psycho-graphic, behavioural, geodemographic
segments, etc. The data and information for segmentation can be collected from the customers
themselves by conducting surveys and some market researches (Brooksbank, Subhan and Miller,
2018). The market for the selected company can be segmented on the basis of psychometric and
geographic segments.
Targeting: After segmenting the market into various parts, the establishment needs to
concentrate on that part of segment which can provide it maximum profit and cam be the
optimum target for selling its products and services. Potential target market can be decide by
analysing customer lifestyle, behaviour and economic condition of the segments. For the
products and services provided by McDonald, geographic and demographic segments are the few
to be targeted.
Positioning: Positioning is the last step of strategic marketing planning that is the core
framework to develop the marketing plan and setting the objectives for effective marketing mix
(Palos-Sanchez and others, 2018). With the depth analysis of segmented market and behaviour of
targeted segment, markers of the respective establishment are capable to decide the functioning
of marketing mix factors which is presented as under:
Marketing Mix: The 7Ps consisted in marketing mix are decided by the marketers of
McDonald in order to execute an effective marketing plan are given below:
Product: By evaluating the market, the marketers has decided to produce chicken burgers
and sandwiches for economic customers and McCafe Frappe Mocha, Hot Fudge Sundae and Egg
white Delight McMuffin for premium customer.
Price: The organization sets prices for its products and services on a demand based
methodology hence prices are slightly different for each product and franchisees are nor
prescribed any pricing as they can set prices according tot the demand in local market.
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Place: The strategy for placement is different in different countries as the company
provide home delivery services only in few countries. Most of the McDonald restaurants are
opened for 24 hours for all week.
Promotion: The marketers of McDonald uses newspaper, televisions, magazines, internet
and social media for promoting its products and services. It also provide discount offers and
jumbo & combo meals offers for attracting the costumers.
People: Approximately 97,000 people are working with the McDonald in UK only but in
order to open more franchisees, the organization needs to employ 1,000 more employees. The
organization is investing £40 million every year (Marketing Mix for McDonald, 2017).
Process: The entire process of preparing and delivering the food to the customers is
transparent and visible. Other aspects of the process such as customer care and assistance, food
ordering and delivery is also satisfactory.
Physical Evidence: The interior of all the outlets of the organization is attractive, clean
and hygienic. The physical environment of the outlets provide a positive experience to the
customers.
Marketing Budget and Control: For effectively implementing the above discussed
plan, it is significant to prepare an attractive marketing budget. Without sufficient financial
resources, it will not be possible to apply all the marketing strategies in order to sale the product
(Spitz, 2017). With the help of marketing research and financial management team, marketing
professionals are able to estimate that overall plan execution process will cost £ 10 million to the
company. Marketers also have to make sure that the plan and budget which is prepared is
working in its defined and guided manner. For these purpose, rating scales as well as cost-benefit
analysis will help the professionals in managing the budget and overall marketing activities.
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