Report on McDonald's Marketing Strategies and Planning for Business

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This report provides a comprehensive analysis of McDonald's marketing strategies, examining the company's approach to attracting and retaining customers. The introduction defines marketing and its importance, setting the stage for a case study of McDonald's. The report explores the major roles and responsibilities of the marketing function, including product management, content management, financing, selling, pricing, and distribution. It then delves into the specific roles and responsibilities of marketing within a large organization like McDonald's, covering departments such as customer service, management, economic management, distribution, marketing, human resources, production management, evolution and research, ICT management, and sales administration. The report also discusses the application of the marketing mix in planning processes to meet organizational goals. The assignment concludes with an overview of McDonald's marketing plan, summarizing key strategies and their impact. The report highlights how McDonald's uses various marketing techniques to meet customer needs, achieve sales goals, and maintain a strong brand presence in the competitive fast-food industry. The conclusion summarizes the key findings and insights gained from the analysis.
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Marketing Essentials
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Major roles and responsibilities of marketing function.........................................................1
P2 Roles and responsibilities of marketing in large organisation...............................................3
TASK 2............................................................................................................................................7
P3 Ways of applying marketing mix in planning process to meet organisation goals...............7
TASK 3..........................................................................................................................................12
P4 Marketing plan.....................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16
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INTRODUCTION
Marketing refer to a process of determining, communicating, inventing and managing
offers and products that is beneficial for company as well as customers, stakeholders and society.
In brief, marketing can be defined as the procedure by which organisation communicate their
ideas in market in order to influence their consumers. Marketing is a major form of a company
that include promotion of services and goods to attain consumer and accomplish selling goals of
organisation. McDonald is largest food restaurant chain which was established by Maurice and
Richard in California (Al-Weshah, 2011). In this report, case study of McDonald's marketing
strategies would undertake. This report will study plans and marketing strategies of respected
company that they use to build and attract consumer.
Objective of this assignment is to decide the techniques and methods by company
determines a marketing strategy in order to satisfy their consumers requirements and
expectations. This will also analyse roles and duties of promotion in an organisation and general
point of view. For a accurate marketing planning, what are the use of marketing mix in all
process is being explained. These elements help in achieving organisation gaols and objective
and assist company to meet their vision in effective way.
TASK 1
P1 Major roles and responsibilities of marketing function
Marketing function assist an organisation in reaching target consumer and satisfy their
needs and requirements. It has a significant role in accomplishing mission of organisation as well
as promoting company in market. Here are few roles and duties of marketing function:
Management of Commodity and Services -
Through management of products, change in services and goods is being made in this
process according consumer needs and demands. Products are main assets of company through
which they do business in industry through what company increase their revenues and sales. This
include product quality, colour, style and packing method. Packaging is also important for a
company because it present product and that matter according to attraction law. So this should be
in different and specific manner which can intrigue clients by their look only. McDonald have
their packaging style and eco-friendly technique which is unique from other that is attractive in a
way to consumer (Albert, 2014).
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Management of Marketing Content -
This is primary step, in which organisation should first understand consumer expectation
and demands and determine their target customer. Collection of information and content is
necessary to understand trends and buying behaviour of consumers. New media and internet is
vast medium in order to collect content related to any context. Usually, it is done through
analysing and survey upon their taste and habits and their responses upon existing products in the
market. To undertake this process, company need to create innovative strategies and plans. This
is initial step to gather information of industry and consumer behaviour. Also, this help in
analysing changes in their needs and demands and help company in vary their product
innovatively according consumer requirements (Altaleb and Brodsky, 2013 ).
Financing -
Financing is eliminated in different forms in which at first finance should work along
with department of marketing. Initial motive of organisation is always earn back all revenues
and capital which have been spend, therefore, marketing strategies must be effective and
innovative to accomplish first aim of company. Another is to reach each consumer which are
situated in different geographic areas and attain target consumer. This process deal with clients
by providing them a second choice to reach them. This create potentiality and loyalty in
consumer in regard of company and make a relation among them. Such process is done through
providing credit choices, leasing and loans and other funding help.
Selling -
Selling is feedback of marketing activities and promotion practices that occur in company
in order to get desired result. Merchandising is main source of earning revenues and profits and
balance the expenses which is made in production and promotion process. The sales of products
depend upon consumer demand, where higher demand means more sales of products and lower
demand mean decrease in sales of products and services. Marketing and selling process is
interrelated as selling of commodity will be higher if marketing and strategies planning would be
done properly. Marketing is a complimentary function which is a response of consumer toward
product. For Example McDonald started Happy Meal and people started buying this offer which
increased their sales that is why this offer is still being offered by company.
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Pricing-
This is a very complex process in organisation to determine price of products and
services according market environment, consumer demand and company expenditures
(Berkowitz, 2016.). In marketing process of an organisation, they have to balance their price and
terms according different aspects such as increase sales and revenues as well as market value of
product. In the competitive market, many brands and companies are providing same product and
services in industry to consumers in lower prices, thus, company have to make sure all causes
why consumer will purchase their product. Through better price, company can attract consumer
providing them better schemes and discount offers.
Distribution -
Distribution can define as dispense of products according consumer destination and
geographic areas where they will be purchasing products. It depend upon availability of products
and services at convenient areas of consumer from where they can easily access them. This is
essential to distribute product on a justified quantity at different places. Marketing help in
accessing various places and help in analyse the requirement and place where and what quantity
is needed in that particular points and assist in dispersion process. Online marketing is a new
technique through distribution of product is become easy in market. This is convenient and cheap
process of distribution where costumer buy online product and company have to deliver them at
their destination. McDonald, whereas, still is not active in online purchasing but they have
distribution of their produce at almost every prime location and with the facility of franchisee.
Company need to commercialize their products to sales more quantity and earn maxim
um profits out of it. Marketing is essential in order to achieve target audience for organisation. It
is not about the quality and price of product, this is about a informing customer in effective way
about all features of company and service. McDonald build such understanding between
consumer and company through better and marketing.
P2 Roles and responsibilities of marketing in large organisation
In huge companies like McDonald it is not complicated to find various roles and
function. Every department is allotted different work (Dibb and Simkin, 2013). Some McDonald
departments and their roles are as follow:
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Source 1: Business function in organisation, 2017
Customer Service -
McDonald customer service department try to resolve consumer problems, issues and
complainants and understand their demands and supply in various restaurants in different places.
Understanding the circumstance of present market, McDonald set their objective to satisfy their
clients and their demands. Customer is present are smarter and educated in respect of previous
time and their expectation are higher. Consumer want a polite and gentile services in restaurants
from company. McDonald train and develop their staff for consumer services and develop their
communication skills and provide an effective and positive environment in their restaurants.
Customer services are mainly taken care by customer service department which have been
situated in stores and restaurants of McDonald (Ellguth, 2014).
Management Department -
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Management or governance department of an organisation is the support system of a company.
Administration department manage and control all organisational activities and budget and
planning strategies of McDonald's employee and each department that run for functioning of
company. This consist of many function such as ex-porting and importing mails, documenting all
work and data, faxes and other work. Administration function must be creative, and flexible and
also controls and able to maintain all clients and international guests and manage relation with
different guest and stakeholders. An improper planning, management and schedule can be loss of
consumer or permanent clients form company.
Economic Management -
This is the major challenge and essential part of any organisation so as McDonald's.
Economic or finance department handle and control all investments, shares, funds and revenues
of organisation managing all expenses and benefits. McDonald finance record all capital related
cases such as investment, benefits, loss, share market and other. Issues and problems related to
financial function need a research and deep information and then any decision is being taken in
McDonald. This generally maintain profit budget department, sales and structure of benefit and
loss and organising activities budget that take place in McDonald.
Distribution Department -
Distribution monitor dispense of products and services and their placement at right place
on definite time for right consumer in proper state (Ekmekcioglu, 2012). As McDonald serves
products at restaurants and provide take away services, distribution of commodity process is not
that complex for it. Also, McDonald produce their food and beverage at the stores only and have
a perfect packaging system that is the reason, there are less issues in McDonald of distribution.
Marketing -
marketing refers to promotion and identification process of consumer of organisation in
order to meet desired result. McDonald is very active in marketing of their brand worldwide.
McDonald use different marketing strategies and promotion activities through various media
means to reach and inform consumer and build a goodwill in industry. To understand consumer
demands and recent trends McDonald conduct environment analysis and study consumer
behaviour and make requited changes in their system. Also, McDonald provide training and
development activities to their employee to increase performance of company.
Human Resources(HR) -
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Human Resource Management manage and monitor employee relation and proceed
selection and recruitment process of organisation to select skilled and qualified employee for
company who can assist in accomplishing goals and aims. HR hire employee and make sure that
they deserve those vacant places. Recruitment process is time consuming as well as expensive.
Recruitment of wrong candidate not only waste time and money but also efforts of company and
HR. Also, HRM manage and organise different activities to handle employee relation and avoid
conflict in workforce (Ferreira, Kostakos, and Dey, 2012).
Production Management -
McDonald's provide a transparent production of foods and beverage in order to assure
consumer about clarity and hygiene. They have unique production services that was initiated by
company in market. They allow consumer to see and examine all ingredient and spices that are
being used in their foods and services. McDonald provide foods services as quick as possible
with good quality and taste. Manager examine the process and food quality before serving to the
consumer. This process assure consumer about their food and services that is being served.
Evolution and Research Department -
This is solicited with improvement in existing products and services as well as function
and making valuable changes through research and analysis of respected filed. This work on
different market analysis and feedback study of consumers and design and create new strategies
of product and company development in innovative method. McDonald pursuit for new concepts
through they can achieve consumers and cater new service within a period of time.
ICT Management -
ICT consist of all parts of computers and technologies such as scanners, servers, counter
system, software, extra hardware system and update of software etc. McDonald where use new
technologies in their production and payment system, they have different department for
purchase, distribution and response services. For understanding these system, they have a
technical person who have a knowledge of all system. McDonald train skilled employees about
technical activities and software in their restaurant. Also, this manage security system of
McDonald that restrain company from viruses and hackers (Hugos, 2011).
Sales Administration -
Sales is major goal of organisation which is feedback of company products and services
that is bring to serve. If a product has good quality, features but less sales insight in market, it
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will be worthless. An organisation fixes some objectives before launching any products and
services in order to achieve desired result and consumers as much as they can. Sales can be
increased through proper planning and strategy building activity and their implementation in
industry. Therefore, Sales are related with marketing and promotional department. Sales of
products shows popularity of product and service among consumers.
Main role of these departmental activities is to achieve organisation goals and aims
effectively and efficiently. Entire departments are required to be managed and controll in order
to keep focused to employees and organisation aims. Every function has a different roles and
responsibilities that they play in order to smooth functioning of company and increase benefits
and revenues of organisation (Idemudia, 2014).
TASK 2
P3 Ways of applying marketing mix in planning process to meet organisation goals
Marketing mix is collection of elements that is monitored by organisation in order to
impact purchase of assets to consumer. Those factors affect sales and marketing activities of an
organisation. This help organisation in keeping right product at right place to influence a specific
targeted audience. McDonald utilize marketing mix tools to understand and influence market and
consumer and attain the set objectives and aim. Here are 7P's of marketing mix tools including
product, price, process, people, physical appearance and promotion of McDonald explained
below:
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Source 2: Marketing mix, 2017
Process -
Process is all activities which used in a company in order to deliver products and services
to customers in foreign trade. McDonald is largest food chain of restaurants in services and food
industry. Company have to maintain and control harmony among employee and worker of
organisation and continue process of all departments. Also, organisation have to follow legal
policies of organisation values and culture and then determines packaging and presentation
process of products (Joshi and Kumar, 2012). This maintain healthy and safety issues of foods
and beverages and undertake all procedures and issues related to consumer health. Also,
McDonald run a transparent process of production and packaging of foods and services which
assure consumer about hygiene.
Product -
McDonald provide a wide variety of products to consumers giving a range of option and
choices to select. Also, McDonald introduce new products and services to consumer after a
period of time that maintain interest of customers. However, it is clear that McDonald started
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their business by selling shakes at a stall, now they provide a lot of varieties of food including
veg food and non-veg foods (Kongstvedt, 2012). These include different products such as
Hamburger, French fries, Aloo Tikki, Mc Egg, Mc-Chicken and beverage such as coffee, cold
drink, also ice creams, salad, and brownies and many other.
Price -
McDonald keep competitive cost of their product and keep them affordable and
convenient for both medium class buyer as well as elite people. McDonald understand the
strategy people need good quality product at low price, thus, McDonald offer them products
from lower cost to higher prices that is major reason of company success. Also in case of
increasing price, it utilizes premium pricing technique to set cost of their services and products.
Place -
McDonald believe in deploying their business in all prime location and large place and
easy availability of stores and restaurants to consumers. McDonald own their business in more
than 119 countries with approx 36,258 restaurants worldwide. The strategy of expansion is
effective covering most of nations in world. McDonald want to establish their business not only
in urban areas but also rural localities. Also, McDonald have their restaurants in prime locations
such as malls, highways, markets, hotels and crowded colonies.
People -
Employee are second person of any organisation and first person who meet the
consumers directly and indirectly. McDonald believe in managing employee relation and
improvement of them. For that Company provide incentives for better performance and award
their employee with stars in order to enhance their actions. Employee are the person who
function, and manage whole process of company. Also, they organise various activities and
training and development programmes for their worker to boost their confidence and
performance.
Promotion -
McDonald use very effective techniques of publicity and marketing. Promotion assist
interaction facilities with consumer and present organisation in a positive way. McDonald
promote themselves through various medium of media such as newspapers, television, radio,
hoardings, banners, flyers, brochures as well as other tools like point of view technique and
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souvenir advertising. McDonald also participate and advertise through it and promote products
in various global events such as FIFA world cup, Cricket world cup etc.
Physical Appearance -
Physical appearance of a person as well as organisation is important as it depict
organisation's outer view as well as make mind of consumer weather they should try their
product or not. Through better physical appearance, McDonald not only portray the company at
local place but build their image internationally (Lai and Joseph, 2012). Company employee are
well trained and friendly with their consumer. The restaurants are hygiene, clear and with proper
dine-in facility. They are situated in a good and convenient location so consumer can easily
access their services.
7Ps McDonald Burger king
Product McDonald provide non-veg and veg
products in wide varieties including
burgers, McPuff, ice cream, salad,
beverages etc. Also apply new study
and cater new products according
consumer expectation.
Provide only fast food consist burger and
other fast food. This is an emerging brand
in the paths of achievement. Concentrate
upon every kind of product serves
including bacon, muffins, burgers, coffee,
pizza etc.
place These own restaurants more than
36,258 in approx 119 nations and
deploying their business in other
countries. Goals to deploy them in
urban as well as rural locations.
This keep change their stores interior and
own more their restaurants more than
11,900 in worldwide and expanding in
more and more places.
price McDonald have competitive prices
for their products and they cost for
services too (Laudon, and Laudon,
2011).
They keep their prices lesser than
McDonald on few products and also keep
normal price of products.
promotion McDonald use various media as their
means of promotion and they have a
constant tag line from decades which
Initiated in promoting products and offer
a lot of opportunities and schemes to
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