Marketing Essentials: McDonald's Marketing Mix and Strategy Report

This report provides a comprehensive analysis of McDonald's marketing strategies. It begins by outlining the key roles and responsibilities of the marketing function, including marketing information systems, distribution, product management, pricing, promotion, selling, and financing. The report then explores how these marketing roles relate to the wider organizational context, including customer service, finance, human resources, sales, production, research and development, and ICT. The core of the report examines the marketing mix elements (product, place, price, promotion, people, process, and physical evidence) of both McDonald's and KFC, providing a comparative analysis. Finally, the report concludes with the development and evaluation of a basic marketing plan, including budget and target market considerations, to assist the company in achieving its marketing objectives. The document aims to provide a deep understanding of marketing strategies and their application in the fast-food industry. The report uses a number of references to support its points.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of the marketing function..................................................1
P2 Roles and responsibilities of marketing relate to the wider organisational context..........3
TASK 2 ...........................................................................................................................................5
P3. Various elements of marketing mix in comparison of McDonald with KFC .................5
TASK 3..........................................................................................................................................10
P4. Produce and Evaluate a basic marketing plan ...............................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing essential is a essential process in which business organisation promote their
ultimate products and services in market place which results in generation of sales. It is the
responsibility of marketing department to carry out this process in effective and efficient manner.
They have to carry out different types of interrelated activities that include advertisement,
promotion, communication that persuade potential consumers to purchase that product and
services (Baker And et. al, 2016). The company included in this report is McDonald which is a
fast food restaurant and is among the largest chain in the world. They have around 38000 outlets
located at several places and offer different types of products like chicken items, cheeseburgers,
beverages and soft drinks. The report focuses on key roles and responsibilities carry out by
marketing function as well as its relationship with different department that is present in single
organisation.
Marketing procedure is dynamic in nature that involve several actions that has to be
performed by marketing manager in adequate manner. Assignment also throw light on
development of marketing plan which include number of aspects like budget, target market
which assist the company to carry out their marketing function in sustainable manner and results
in accomplishing final objectives.
TASK 1
P1 Key roles and responsibilities of the marketing function
Marketing is an important tasks of an organisation as it helps to make people aware about
product and new implementations to improve more number of customers for particular brand. It
is necessary to carrying out different types of promotional activities in appropriate manner
which facilitate to improve productivity as well as profitability of the company. Several roles and
responsibilities of marketing which is considered by McDonald are given below:
Marketing Information System (MIS): - This can be described as an organised system
of a company which provides an essential information about anything for future perspectives. It
is useful for making an appropriate decision, coordination, control, analysis and visualisation.
This system can be considered as an academic discipline that studies people, technology,
organisations and relations between them (Getnet, Kedir and Yousuf, 2014). Basically it helps in
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rendering proper knowledge about something for which an essential decision making is
important to conduct processes to attain desired outcomes (Desai, 2013). McDonald have to
establish an effective as well as efficient information system to build significant strategies and
policies achieve better results.
Distribution (Channel Management): - It can be defined as to conduct distribution of
product at required location according to demand of customers. Marketing has an important roles
to determine amount requirements at different stores in various places. It is necessary to provide
products in desired measures so that people become capable to purchase goods to fulfil their
needs, wants and preferences of clients. This facilitates to attract new customers and make them
regular or loyal for brand easily available service is mostly preferred by consumers. McDonald
has to establish proper marketing team to fulfil role of determining an appropriate demands of
people so that distribution can be done properly.
Product (Service Management): - This can be described as final good which is ready to
sell for completing needs, wants and preferences of individuals. It is necessary to prepare a
product as per tastes or preferences of customers to make them satisfy and retain them for a long
time with brand (Chamorro-Mera, Miranda and Rubio, 2014). People are fond of following
trends as they purchase goods or services as per market scenario. Marketing department has an
essential role to identify requirements and demands of clients and according to that product
should be modified or changed to fulfil expectations properly. McDonald have to provide
appropriate food items to people as per their desires through analysing current fashion of eating
habits of consumers.
Pricing: - It can be explained as an amount which should be spend by an individual to
buy specific product. It is necessary for companies to decide an appropriate price of service
which is generally affordable by people so that they become able to purchase it properly. In
basically includes cost of manufacturing and profit of an organisation. People has an image to
their desired product in their minds along with it cost then it is mandatory for firms to determine
thinking or views of customers and then produce goods to provide them at reasonable rates.
McDonald have put their efforts to render their food items to clients at different rates so every
single person become capable to purchase product of this company (Black, 2013).
Promotion: - There are various kinds of promotional activities which are necessary to be
carrying out in effective manner to promote particular production front of people. Promotion is
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major task of marketing section of an organisation to make people are about goods or
implemented modifications as per current trends of market. It is beneficial procedures as it helps
in attracting new clients along with retaining current ones that facilitates to productivity as well
as profitability. McDonald is also conducting several effective promotional events by utilising
their influencing logo that make people convinced to purchase food products of this organisation.
Selling: - This can be explained as to provide a desired product or service to customer at
reasonable price for completing their needs, wants and demands. It is necessary to completed
selling target on regular basis to earn profits. Every company has establish their brand and
producing goods for selling to fulfil desires of people (Dibb and Simkin, 2013). They have a
motive to provide an appropriate service to people to achieve their satisfaction and attain profits.
McDonald have to make sure to render required food products to people which they like most to
gain more benefits. Market8ing is helpful to improve targets of sdales on rgeular basis.
Financing: - This refers to several forms of funds or money which is necessary to
conduct desired aspect of business to earn profits. It is necessary to implement a required amount
of capital so that various kinds of activities or tasks should be carried out in more effective as
well as efficient way to get better outcomes. McDonald have to maintain funds for marketing
activities in proper manner to achieve desired outcomes in terms of attaining more number of
customers for brand. Funds are required for marketing activities to conduct them in accurate
manner.
P2 Roles and responsibilities of marketing relate to the wider organisational context
There are different types of roles and responsibilities of marketing which are relevant to
different types of other other functional units of organisation. Various kinds of departments are
working in company but they all interrelated to each other (Asaduzzaman, Hossain and Rahman,
2014). It is necessary to establish an appropriate cop-ordination as well as cooperation because
whole organisation should be performed to achieve single goal. Different kinds of sections in
McDonald are related to other functional units which are given below:
Customer services: - This can be explained as to provide an effective as well as efficient
product or service to people. It is mandatory to render desired goods to customers as per their
needs, wants and demands to fulfil expectations in appropriate manner to gain better outcomes. It
is necessary to attain an important factor that is satisfaction of clients which plays an essential
role to make people loyal to brand for a long time which results into profits of an organisation.
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McDonald have organise an efficient marketing team so that they can determine actual desires of
customers and then manufacture appropriate goods to them for achieving their satisfaction as
well.
Distribution: - The term distribution can be defined as to make product available at
different stores or branches in various places so that people can easily purchase their required
product as per needs or preferences of people. Marketing team of company has target to
determine exact requirements of people and render accurate information to manufacturing
section which results into producing correct goods (Hsu, 2011). McDonald have to prepare
desired food items according to taste and preferences of clients to attract new customers along
with retaion9ing current ones to get better outputs.
Finance: - This can be described about funds or money which are necessary to be applied
in company for carrying out different types of activities or tasks to attain desired outcomes
properly. A required capital is mandatory to be implemented along with maintaining margin of
cost so that a sudden issues regarding funds can be sort out easily. Apart from this, if any kind of
change for modification is needed then it will also requires some amount of money. McDonald
have to provide desired funds for different departments of company like marketing.
Human resource: - It refers to work force company who plays an important role as it
conduct every procedure and put efforts to generate desired outcomes. Manpower of any
organisation is responsible for their growth and earning of profits on regular basis (Ionitã, 2012).
Marketing team also requires employees who are well skill and able to conduct desired
procedures and have capability to attain better results. McDonald have to focus on staff members
included in marketing to improve their efficiencies for gaining desired benefits.
Marketing: - This can be defined as various kind so promotional activities such as
advertisement, banners, posters, pamphlets and many more (Wirtz, 2012). McDonald have to
establish an effective team of marketing so that number of customers and sales will be boost up
on regular basis.
Sales: - It can be explained as to put appropriate efforts to increase sales of company on
daily basis which helps to boost up productivity as well as profitability. McDonald have to apply
several innovative features into food products to attract more customers which facilitates for
boosting up sales of an organisation.
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Production: - This can be defined to manufacturing products or services in appropriate
manner to gain desired outcomes. Marketing team of McDonald have to determine actual desires
of people and produce appropriate goods through better methods to attain required outputs.
Research and development: - This is all about to conduct research and development to
determine trends of market and implement desired modifications into products or services (Jones
and Rowley, 2011). McDonald have to focus on desired demands of people and through
conducting survey and provide correct food items.
Administration: - This can be described as to concentrate on whole process of company
which is carried out on daily basis for completing an appropriate goal or target in terms of
achieving better productivity as well as profitability. McDonald have to focus on threats and
opportunities so that business can be expanded or reduce possibility of problems.
ICT: - The abbreviated form of information communication technology known as ICT.
McDonald can utilise this technique to convey important orders or informations to staff members
at single strong in accurate manner. This will helpful to place an essential knowledge so that
activities and tasks can be conducted in correct direction to attain better outcomes.
TASK 2
P3. Various elements of marketing mix in comparison of McDonald with KFC
Marketing mix is a essential component that include several factors that helps in carrying
out the process in effective way. Initially there were four factors that is included in the marketing
mix namely product, place, price and promotion. As the time changes and due to introduction of
modern concepts three more components are also included that are process, physical evidence
and people (Kennedy and Parsons, 2014). The major competitor of McDonald is KFC and
comparison of marketing mix of both the companies are described below:
Basis of difference Meaning McDonald KFC
Product This component of
marketing mix refers
to physical item that is
offered to final
consumers in market
McDonald offers
different types of food
items that include
vegetarian and non
vegetation category.
KFC is famous for
chicken items and
offer different varieties
of same products like
chicken Zinger burger,
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place. Every company
produce diverse types
of products and
services in accordance
to their target group of
people.
They are famous for
hamburgers which is
sold in every outlet.
On the other hand,
they also market their
products in accordance
to local demands and
preference. Their
products involve
cheeseburgers, French
fries, Mc chicken,
beverages products.
crispy chicken etc.
Price This element of
marketing mix involve
price that the
customers pay to the
product of company. It
is set according to
demand, supply
concept. Company
always set such prices
of their products so
that final customers
could afford it easily
and leads to fulfilment
of their needs and
wants (Jacobs,
MacRae and Sladyk,
2017).
McDonald adopts
bundling pricing
strategy in which they
offer bundle of food
items in form of meals
to their customers.
They always
concentrates on selling
products on
psychological strategy
in which prices are set
in such a manner that
can be easily afforded
by the consumers.
They also focuses on
tapping middle class
people. Their main
focus is young
generation who always
KFC supply all their
products at reasonable
price which can be
easily afforded by the
customers. They have
adopted inventive
pricing strategy in
order to set prices
according to needs at
different geographical
region.
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want convenience and
brand conscious. On
the other hand they
also offer several
discounts on number
of food products so
that customers remain
happy. Sometimes,
they reduce prices in
several countries
wherever it is required
to attract large number
of customers.
Place This component of
marketing mix focuses
on positioning their
image in market place
so that they could
make decision in
accordance to their
focused group of
people.
McDonald is
established in around
100 countries and have
approx 35000 outlets
in various places of the
world. They impart
several services in
relation to sitting
arrangement that is
present in indoor and
outdoor area. They
follow certain rules in
their outlets like it
banned smoking
activity and always
focuses on building
high standards.
KFC always selects
their place of
establishment after
considering number of
factors like climate,
infrastructure facility,
labour availability,
presence of
consumers. They have
approx 20000 stores in
125 countries (Khan,
and Adil, 2013).
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Promotion This element of
marketing mix
concentrates on
creating the
sustainable image in
consumer's mind and
for this they have to
carry out various
promotional activities.
McDonald have their
promotional strategies
and spent lots of funds
to carry out this
process. They
advertise through print
and electronic media
like newspapers,
billboards etc. apart
from it, they also
sponsor various type
of events like FIFA
world cup. Their
branding campaign
focuses on “I'm Lovin
it”. They do not use
negative campaigns
structure in response
to their competitor's
strategy. They have
number of television
activities that is
promoted by
celebrities like kobe
Bryant, Jamie
McMurray, and other
potential person.
KFC carry out their
promotional function
through social
websites like
Facebook, Instagram,
you Tube. Apart from
it, they also use
electronic and print
media.
Process This element involve
the ways through
several activities are
carried out. There are
McDonald have make
improvements in their
cooking process and
adopted advanced
The ownership of KFC
is classified as
franchise owned or
company owned.
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several key areas that
involve conduction of
process in appropriate
manner so that
ultimate aims and
objectives could be
attained in set time
period (Kwon and et.
al, 2017).
equipments for food
processing process.
They also focuses on
improving their
distribution network
this results in
increasing their home
delivery function.
There is lot of
expenditure that is
required to construct
the single outlet at
various places. The
delivery services is
also very less and
operate with small
kiosks that offer
limited menu items.
People This component
focuses on all human
resources that include
customers, employees
of the organisation.
McDonald have a
unique method to treat
their customers. They
have set system to
manner their
employees that are
working there. The
manager of each food
outlet have certain
responsibilities that is
followed by him
which include high
quality maintenance,
customer's satisfaction
and enhancing the
current performance of
employees. Rating
system is used to
measure the overall
performance of each
employee and are
KFC offer first class
customer services and
make all efforts to
make them happy so
that they remain
satisfied. They train
their employees for the
same and develop
many programs for the
employment
opportunities. They
also have franchise
option that is available
in their website and
mentions some
standards to qualify
and experience.
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judged on this basis.
Physical Evidence It include the physical
feature, design that is
utilised by
organisation to create
their image in
customer's mind.
McDonald always
create a long lasting
impression in their
customer's mind by
delivering quality
services to them and
satisfy their needs
properly. For instance,
their outlets have
attractive display and
promote conducive
living environment.
They always imparts
such lively
environment which
includes family, young
feel in their premises
(Lin, and Wang,
2015). On the other
hand, their websites
are also simply
structured and show
their strong presence
of its image.
KFC always put
attention to make use
of high and effective
quality of local
availability of
suppliers that include
Godrej, venkys. They
also have another
operation system
known as KFC
foundation in which
employees of the
company and students
are provided education
aid.
TASK 3
P4. Produce and Evaluate a basic marketing plan
Marketing plan is a process that is formulated to carry out number of activities that will
be adopted by marketing manager so that proper actions could be carried out. It is a written
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document in which various steps are included like aims, objectives, budgets so that whole
process can be conducted properly (Mihart, 2012).
Marketing plan matters a lot for a company cause it gives overall scenario about a
business including cost which needed to invest in the beginning with an expectation of earning
profit in the near future (Natarajan and et. Al, 2013). It is divides the entire phases that are
needed to be implement in process of increasing sales by putting all the efforts that can hike the
sales of the company which is the major role of a marketing. McDonald's marketing plan covers
all the aspects which are mentioned below-
Executive Summary – Executive summary is an outline of the company plan for
marketing that is used to destroy or reduce all kinds of problems which may affects on the
business growth (Swenson, Rhoads and Whitlark, 2014). The growth is measured on the basis of
previous year performance and it also includes the objectives that are going to achieve through
strategies. McDonald's wanted to achieve its objectives then it needed to focus on overall
financial positions which includes market share, profits, sales, budget and analysis of all
divisions and departments. It will surely executed its plan when it completed all its plan and
work and then it will go up to the mark.
Company overview - McDonald's is the world's leading food service retailer and around
35000 restaurants chain in more than 120 countries across the world. The motto of inception is to
provide the quality food to their customers with their best service in order to attract their
customers (Nguyen and Simkin, 2012).
Mission – McDonald's is a brand and its mission is to be a customer's favourite place to
eat and drink. Its worldwide operations are aligned around a global strategy called the 'Plan to
Win'. It is dedicated to improve its operations and enhancing customer's expectations.
Vision – McDonald's vision is to provide the world's best service restaurant experience.
Its aim is to be best through offering outstanding quality, service, cleanliness & value, so that it
can give smile on every customer's face.
Situational analysis – An analysis of current marketing structure defines through micro
and macro factors that affects on the its short term goal. The internal analysis is done by SWOT
and external analysis includes PESTEL.
Internal analysis – This analysis defines internal functioning of a company that impacts
on company's performance. The SWOT analysis conducted as below -
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SWOT analysis
Strength
McDonald's has its huge impact on its
competitors as it has a worldwide presence.
It is a renowned market leader in both
domestic and international markets.
It cleverly uses economies scale to achieve its
cost reduction strategies.
It has been experienced its long term economic
growth and also taking the advantage by
expansion in global market.
It is able to generate high revenue and sales as
it is brand itself.
Weaknesses
Market saturation has made the expansion so
difficult for the firm. It is very slow in
innovation process (Peck and Hall, 2013).
Opportunities
It can make its outlets in a better way to attract
new customers by giving value added services
like internet access.
It still has an opportunities to expand in
international market and Europe, Asia and
Latin America is also available for penetration.
It can innovate its products to catch more
customers.
Threats
McDonald's open to the modification in the
worldwide economy. It has violent global
growth that mad it defenceless to other
countries economic slowdown.
Fluctuation is foreign currency rates are also a
big threat for McDonald's.
External analysis – External analysis covers the exterior factors which has a significant
impact on business activity but they are not exist within the company. McDonald's would be
affected by political, environment, social, technological, economical and legal aspects of the
country which needed to be take under consideration while expanding its business or having a
prior existence in the country (Papasolomou and Melanthiou, 2012).
Segmentation – There are various types of segmentation that can effect on marketing
process and it needed to be performed in accurate manner and that' why the market segmentation
research is conducted on the basis of four patterns. The segmentations are named geographical,
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demographical, and behavioural (Ogunmokun and Tang, 2012). McDonald's food products are
derived for all kinds of people whether they are business, corporate people and other people they
can get the advantage of any kind of eatery.
Target – When the market has segments then the firm needs to focus on its particular
area to attain the high sales. The food products of this food chain can be a good solution for the
people who are working in tough schedule then they can eat already prepared food. The food
products are available to in all the countries and also affordable by every class people and that is
the main reason of its popularity.
Positioning – When the segmentation and targetting is to be completed then the next step
is to preparing to reach out the actual user of the product that has to be made for them. The
company plans to sale its products by telling about eh attributed of the product. McDonald's is
looking for the promotional activities in order to introduce a new product in the market and the
promotions will get customer's attention in order to try a new flavour.
Budget – Budget refers to the estimation of the expenditure required to be made in the
new marketing plan. The budget should be accurate with all the expanses so that the small losses
cannot made a harsh impact on the business (Papasolomou and Melanthiou, 2012). Marketing
budgets are designed to support the marketing strategies as they need huge expenses,
McDonald's budget designed and allocated after analysing the given strategies on the hand which
is presented by the marketing team in front of the finance team. The percentage of budget usually
has been allocated to marketing department every year. The McDonald's marketing budget plan
is given to below which consists of several activities expanses:
Particulars 1st year
Capital 50000
Investments 22000
Total 72000
Marketing expenses
Promotion 3000
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Sales 4100
Marketing 1500
Internet Marketing 5000
Networking 2000
Printing 1800
Advertising 5000
Total 22400
CONCLUSION
From the above prepared report it has been concluded that marketing is consider one of
the important function of business organisation, in which various activities are carried in
effective manner. It is one of the building block of the company as it include conduction of
several actions that results in achievement of final aims and objectives. The report highlights the
case of McDonald which is a fast food restaurant chain operating in several counties all over the
world. Marketing plays a vital role in this organisation as it involve several activities that is
related to market their products and services. The assignment focuses on number of role and
responsibilities that is carried out by marketing function and its relationship with other
departments that is finance, human resource, production which are interrelated with each other
on various aspects. Importance of marketing mix is also included in which 7 components are
examined properly and effectively that helps the company to take decisions accordingly.
Manager have to develop marketing plans which include conduction of activities related to
evaluation, monitoring, target people, budget as well as target group of people.
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Online
Definition of 'Marketing Mix'. 2018. [Online]. Available through:
<https://economictimes.indiatimes.com/definition/marketing-mix>
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