Market Essentials: McDonald's Marketing Mix and Strategy Report

This report provides a detailed analysis of McDonald's marketing strategies, focusing on its key roles, responsibilities, and the impact of external factors. It defines the marketing function and its concepts within McDonald's, including production, product, and selling concepts. The report explores the application of the marketing mix (7Ps) to achieve business objectives, comparing McDonald's approach with other organizations. It examines the strategic marketing process, including mission, situation analysis (SWOT), and objectives. The report also highlights the importance of marketing in business functions, such as research, packaging, transportation, and quality control, and provides a comprehensive overview of McDonald's marketing plan, including its product offerings, customer service, and operational strategies. The report aims to provide a comprehensive understanding of McDonald's marketing efforts and its position in the fast-food industry.

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Market essentials
Contents
Introduction:..........................................................................................................................................3
Task 1....................................................................................................................................................4
TASK 2.................................................................................................................................................9
LO2 Compare ways in which organisations use elements of the marketing mix (7Ps) to achieve
overall business objectives................................................................................................................9
P3 Compare the ways in which the chosen agency applies the marketing planning process to
achieve business objectives. How does it differ from other organisations or could do better
compared to the institutions...............................................................................................................9
TASK 3...............................................................................................................................................14
Marketing plan....................................................................................................................................14
References...........................................................................................................................................17
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Introduction:
McDonald's is one of the famous food brands across the world. McDonald's is very much
popular in the food industry (McDonald, 2011). It is mainly known as ‘burger’ industry.
Macdonald started its journey in the year 1948. This food industry belongs to the UK.
McDonald has 30.000 restaurants in more than 100 countries. Main objective of mcdonalds
to retain their fame and position in the global market. Through those branches, McDonald
serves millions of people across the globe. McDonald's serve their customers with various
food items these are hamburger, cheeseburger, french-fries, sodas, milkshakes, milk and
coffees. McDonald's followed a ‘three-legged stool' business tactics. In this tactics, three legs
are reefed as owners, suppliers and company employees (강강강 and 강강강, 2014). Nowadays
McDonald's is one of the leading food brand (Drożdż, 2016) capable of pressurising any
famous food brand like KFC, Subway, etc.
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Task 1
P1 explain the key roles and responsibilities of the marketing function for the chosen
organisation.
Definition of marketing: marketing is the activity. Series of foundations, methods of
producing, communicating, providing and alternate the customer assistances which valued for
the customers, clients, partners and humanity at enormous.
Nature of marketing:
a) Exchange of product or goods material is the essential for marketing.
b) Marketing is entirely client or customer centred.
c) The market is the process which starts and ends up with the client.
d) Marketing is a type of goal. This goal is achieved by earning maximum profit with
satisfying the customer needs.
e) Marketing can transform monitoring business.
f) Marketing is scientific as well as art.
g) It is a process of understanding and satisfying the customers.
Marketing concepts of McDonald's:
Production concept: it is the oldest concept of marketing. In this type of concept, customers
choose that kind of product that is extensively available and less expensive in the market.
Manager depends on providing more product with low price, with great product competence.
Product concept: this type of alignment where the product quality, performances, and
innovative features delivered to the customer. Manager shows all the focus on the creating
best quality of product and advancement of the product.
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Selling concept: this is a type of concept where the main focus is the selling of the product as
per the customers need. Manager aimed to sell the mass number of the product by promoting
been the market. Various types of promotional options utilised by the company. The manager
used lots of promotional tools to increase the sell.
The impact of external factors on McDonald's:
There are various external factors shows its influence on the market. These factors are
competition, government policies, and natural forces, social and cultural demographic factors,
technological factors.
The role of marketing:
a. Modifying the product, satisfying needs, accelerate the quality of the people's life.
b. With the help of less amount of price a rivalry atmosphere created.
c. Increasing the necessity of product supply which has the power to sell the product in
mass number. Moreover, customers from various geographical region satisfied with
the product.
Marketing as a business function:
Marketing is another function of business. Through this functioning, business organisation
earn profit through selling products. In a business organisation, there are five types of
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marketing. These are corporate marketing, strategic marketing, product marketing, and field
market.
The corporate market is working with each public relations to investor relations. In this type
of marketing lots of programmes conducted to create various groups to aware of that product.
Strategic market: a strategy implemented to enhance the growth and utilise all these strategies
to build up partner programmes.
Product management: price management is the part of this management. It's lengthy tactics
for the product improvement.
P2 Explain how roles and responsibilities of marketing related to the wider
organisational context for the chosen scenario.
Functions of the market in the business:
The market is an important part of obtained profit in each business. In the case of small
business, marketing is the only way to get the success. The process of marketing consists of
researching, packaging, presentation of product and customer services. Good marketing drive
helps to achieve good selling market. To better understand the role and functions of
marketing in a business function are explained below-
Research: it is one of the essential features of the market. Through proper research company
make out the customer’s necessity in the current market. Even the current value of the
product determined by the analysis method. Researching is the best way to gather knowledge
about the rival companies, and their strength, weaknesses.
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Packaging: with research method packaging another function of the marketing in the business
place. Packaging materials are decided according to the clients demand or desired. The
company very much acknowledges customer mind. The company tried to deliver all the
product you want with proper packaging. It also helps to gain more profit from the market.
Transportation: transportation of the good or the product to the client another essential
function of the market. For a business organisation transportation of good is an important
part. After production products or materials are distributed to customers via traffic. Some tie
body started shipping facility for the customer. Risk assessment and quality control:
controlling the product quality is the essential to function for a company (MacGillivray,
2013). Various type of risks faced by the organisation at the time of marketing. To avoid
those risks company tried to maintain the quality. In the case of bad product, the quality
company should face risks such as loss in the market. The reputation of the company damage
because of multiple threats and bad quality.
Strategic marketing process:
Strategic marketing is another method that helps to cover the market by providing innovative
products or ideas. There are five stages in the strategic marketing-
Identifying mission, analysing the situation, setting objectives, developing a market strategy,
planning and evaluation.
Mission: it is the first steps of strategic marketing. It helps to counter the customer for a long
time. An organisation such as McDonald's took the mission to improve their services more to
the client.
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Situation Analysis: McDonald's conduct a case analysis (McDonald, 2011). That is known as
SWOT analysis. This analysis is to calculate the strength, weakness (Hoffman, 2008),
opportunities and threats (Suknev, 2004). This type of strategic marketing helps the manager
to know about the resources. Swot contributes to face any challenges by the organisation.
Objectives: McDonald has own objectives to cope with the recent market. Main objective is
to retain the fame in the global market by delivering best qualities food item to the clients.
Expectation of clients plays an important role to maintain the objectives by McDonalds. They
never crated any type of problem to take the quality of food items or customer services. So
these are the objectives meets by the McDonalds.
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TASK 2
LO2 Compare ways in which organisations use elements of the marketing mix (7Ps) to
achieve overall business objectives
P3 Compare the ways in which the chosen agency applies the marketing planning process to
achieve business objectives. How does it differ from other organisations or could do better
compared to the institutions
The marketing mix is a favourite marketing technique tool by which any business groups can
gain their targets and goals. Though some business organisations are limited in the core of
4Ps that is one of the primary marketing models included with product, price, place and
promotion; the 7Ps model is adequate to achieve overall business objectives. The 7Ps plan
was proposed by E. Jerome McCarthy, and the project was published in his books Basic
Marketing. A Managerial Approach in 1960. At first, 4Ps were developed for the business
where they sold their goods rather than provide services, and their primary role is to provide
customer service that helps in brand development. When the business organisations
considered for reviewing their aggressive techniques, they need to use 7Ps marketing mix.
The 7Ps marketing mix provides benefit for rechecking and defining the main issues which
effect on commercialization of the company and their services and products.
McDonald's marketing mix connected with different types of approaches that attain business
concerns for the various markets all over the world. The marketing mix tells about the tactics
and strategies of the particular firm for using to reach their target markets and target
consumers. The marketing mix a bunch of actions that the business uses to make popular or
famous their products or brands in the marketplace(Dominici, 2009). McDonald’s can be
identified as a Market leading company in the fast food business industry, or the company is
better known to the fast food eaters as the burger industry all over the globe. In 2006, the fast
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food industries attained $105 billion value in the fast food market and 2011; they reached $
128 billion value that is an increase of 23% from 2006. The most leading fast food company,
McDonald's possesses more than 35000 restaurants all over the world in 105 countries most
probably, and they are serving millions of customers in the various countries. As they provide
very fast and friendly service and they maintain their food quality, cleanliness in their
restaurants, the lists of a menu with the supplied values. The McDonald's company follows
an excellent business planning that has been defined as the "three-legged stool" within which
those three legs suggest operators or owners of the company, employees of the firm and the
suppliers. The company connects with various activities such as they operates, develops,
services, franchises the common restaurant systems that make, assemble, package and sell
some limited food items that can be prepared quickly with a moderate price range(THE
MARKETING MIX: A REVIEW, 2014). McDonald’s has discovered training and marketing
programs, quality food specifications, supply and operational systems, all of them are
concerned with the standard in the industry all over the world.
Every business firm should develop an impactful marketing technique. The managers use 7Ps
marketing mix for following the orders from authority to evaluate and reevaluate their
business activities continuously. Product, price, promotion, place, positioning, packaging and
people are the seven Ps in the marketing mix of an organisation. These marketing strategies
are utilised for confirming that the organisation is on the right track and then they are ready to
achieve maximum outcomes.
Product: McDonald's sells predominantly cheeseburgers and Hamburgers, and these food
items make the portion of the standard recipe of the restaurant worldwide(Research on the
institution of China construction employee based on relation theory, 2007). They also vend
different types of products like chicken sandwiches and various fried items, soft drinks,
French fries, desserts and breakfasts, etc. They can sell varieties types of products within
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promotional fixed time periods. The firm tests their new food items on the ongoing basis. As
the company tested on the Chicken Nuggets that is now very popular, but the company had to
continue test on that particular product in 1983.
Direction-
People: the McDonald's company has much productive working employees who wear a
standard uniform within the organisation. The company also focuses on providing prompt
and friendly service that helps the firm to keep their reputation always. The company should
maintain their staffs in different positions as they can work together in an organised manner.
The company provides them to keep their workers a great responsibility in the working
sectors. They should organise some training processes for the employees for making their
better knowledge and talent for the specific industries. There are different types of staffs like
restaurant management officers, restaurant workers, franchisee teams who maintain the
various responsibilities for carrying forward their business efficiently.
Process: the company always tries to keep their manufacturing process and their products
visible and transparent to their customers. When the consumers feel the need of watching the
making process of the food items they are always allowed in the kitchen to look the
production of the food items(McDonald, 2007). But there is a huge risk if the organisation
allows all the customers in their production sector, that will be problematic for the company
as the public entrance in that place may effect on the hygiene of the products. McDonald's
always maintained their standard with the providing their consumers high-quality food items.
For doing the same, they use innovative ideas, and latest technologies that have been installed
in their firm to utilise for controlling their product quality and the company provides their
various food items with many facilities that can attract the customers easily.
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Price: the company had different types of burgers including two dollar cheeseburgers,
different burgers, etc. that the company served to the customers with reasonable price. The
competitors cannot compete with the McDonald’s company as that is difficult for the
competitors in the market. They use value-based pricing of their products, as they serve their
customers the best value products, the consumers will not be affected anymore by eating their
product. The company has to fix their price rate of the products by the customer's observation
of value that is a significant determinant for setting the price rate. Customers always make the
fantastic picture of the price rate as per their wish. The presence of the product is not only
accepted as the physical items but also possess psychological connotations to the consumers.
When the customers get their food items in front of them, they feel some mental pleasure as a
food lover. There may be some danger in using less price as the consumers can assume that
the food quality as not good as the previous time. It is the most important thought that when
the authority decides about the price, they should be aware fully for maintain the integrity and
brand(McDonald, 2006). The McDonald’s divides their items into two categories in India;
branded core value items and branded affordability products. This different price value has
been set up to satisfy the various customers of a different economic condition.
Product: McDonald’s sets a varieties type of menu that their customers want from them.
Market research helps to identify what kind of clients demand what kind of product, though
the new customers have different types of taste. As they want to face old and new both
customers, they have designed their food items with new items as well as old ones. The
company is well aware of their products that may vary on the choice of different types of
customers. In India, the company has a vast product range that is mainly focused on
vegetarians, so they introduce their clients with an extensive veg food items. The children
customers also play a vital role in the selling of the company.
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