Unit 2 Marketing Essentials: McDonald's Marketing Report

This report analyzes McDonald's marketing strategies, focusing on the implementation of the 7 Ps of the marketing mix for new product launches. It examines the roles and responsibilities of marketing functions, market analysis, and customer needs. The report discusses how McDonald's can successfully promote its products, considering factors like pricing, product quality, and service. It also explores the importance of international marketing and adapting to different cultural and economic factors. The report further proposes marketing plans, offering recommendations for improvement and highlighting the significance of marketing mix strategies in achieving business objectives and connecting with target customers. The analysis includes discussions on distribution, financing, market research, and pricing strategies.

UNIT 2
MARKETING ESSENTIALS
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Executive Summary
The report discusses the implementation of 7 P's of marketing mix by McDonald's for
the launch of the new product. As an assistant manager of McDonald's, different aspects while
implementing the strategies are taken care of. The difference of implementation in the 7 P's of
marketing mix between two different organisations is also discussed. An effective
implementation of the 7 P's of marketing is proposed for a new product launch. The significance
of the marketing mix strategy is discussed in launching a new product and the way it is accepted
by the targeted customers. Furthermore, recommendations were suggested for further
improvement of the marketing mix.
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Table of Contents
Table of Contents
Introduction....................................................................................................................................4
Task 1:...........................................................................................................................................4
P1: Main role and responsibilities of the marketing function for McDonald’s.......................4
P2. Responsibilities and roles of marketing pertaining to McDonald’s ................................6
Task 2............................................................................................................................................8
P3. Discussing the implementation of 7 P’s of marketing mix by McDonald’s to achieve
business objective ...............................................................................................................8
Task 3..........................................................................................................................................11
P4. Developing and analysing basic plan for marketing.....................................................11
Conclusion...................................................................................................................................16
References..................................................................................................................................17
Bibliography.................................................................................................................................19
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Introduction
Marketing is one of the essential aspects of successful business. Through proper
marketing company can successfully promote a product among the consumers of the market.
This assignment deals with the proper strategies that the management of a company must apply
to create a successful customer value. The first section of the assignment discusses the marketing
responsibilities of a company for string connection with the consumers and international
recognition and success. The second section discusses the different marketing plan that
McDonald's could apply in order to promote successfully their product among its consumers.
The last section of the assignment reflects the clear analysis of a suggested marketing plan for
McDonald's that will provide an assurance towards its future success. Through these plans and
strategies, a company can create a connection with the consumers to enjoy popularity and
domination in the market.
Task 1:
P1: Main role and responsibilities of the marketing function for McDonald’s
The heart of the success of a business lies in the marketing process that it follows.
According to Menon et al. (2015, p.224), marketing is the process through which a company
promotes its product it produced or the services that it provides. The process of the marketing
consists of several activities such as advertising, public relations, promotion and sales.
Ultimately, the popularity of the product or the service of a company is achieved through proper
marketing of the product.
McDonald’s have been chosen for discussion of the importance of marketing for its
development. McDonald's is one of the largest Fast food restaurant chains in the world. This
company was founded in 1940 and is headquartered at Oak Brook, Illinois, U.S. The marketing
plays an important role in the growth and development of the business at a global stage. As of
today, the popularity of fast food among the global population has increased rapidly. With so any
varieties of foods that provide with different ingredients and taste the consumers in different
parts are craving for more. Popularity of the fast food has led to development of a strictly
aggressive market among the fast food companies or restaurants. Every company in the market
has to face and overcome the strict competition to establish themselves in the market. The
marketing process is the only process of directly connecting with the consumers and
communicating with them. When a company want to implement its marketing plan so company
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have to do market analysis and customer need and want analysis. Every person have different
kind of need and desires. Thus, the identification of their needs and requirements is the key task
of the marketing departments of McDonalds. As one of the most famous dish of the McDonalds
is beef burger. However, the customer value for this specific food item is different for every
customers of the company. Many factors are there which have power to influence the consumer
need and demand. These factors can be explained as:
The price of the product:- which the consumer is paying, should be reasonable to him.
As supported by Prasad et al. (2015, p.5), reliable product at reasonable price helps in increasing
its value of the offering to the consumers. Every consumer wants to own or consume a product
that provides them with high satisfaction at a low cost. The low cost of the product will help the
consumer in creating a good impression in his mind about the company. This will help the
company to separate the consumer from the other companies in the market. The price set by
McDonald's for its popular Burger should be reasonable for the consumers comparing to the
satisfaction level it provides to them. Lower price than the other offerings for the similar product
in the market will automatically create a good impression of the company in the consumer’s
mind. Thus, it will help the company to attract the consumers towards itself.
The Quality of the product:- It is also plays an important role in creating a customer
value. Different companies for nearly the same price offer several products in the market, which
is similar to the product offered by McDonald's. Thus, the company will have come up with a
better solution to make its product unique from the rest of the products in the market by
providing with high quality bread and fresh meat patties. As supported by Parker et al. (2015,
p.0149), top quality product are always preferred by people. A company that offers high quality
products creates a high customer value for their products. This will result in offering of a high
quality product at a similar range of price in the market. Thus, this will help in attracting the
customers towards the company and result in huge sales.
Service:- It is also an equivalent part of the marketing success of the company. Better
service always helps in creating faith in the consumers. As supported by Lau et al. (2017, p.23),
provision of good support and assistance will increase the impression of a company in the minds
of the people. Thus, apart from the existing customers, it will also help in attracting the new
customers towards the brand. McDonald's must also provide with specific services such as order
confirmation, home delivery and receiving complaints that increase the comfort and satisfaction
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level of the consumers. This will result in receiving increased amount of payment for the
exceptional service the company offers to its customers.
Criteria of pass merit:- Company cross pass level when result take place between 40-
59%. When result take place between 60-79 its merit criteria and when any result take place
between 80-100 its Distinction criteria of company.
P2. Responsibilities and roles of marketing pertaining to McDonald’s
Every business in the world aims to develop and spread its business in the market. As
supported by Sweetman et al. (2015, p.S09), the international recognition for a specific company
helps it to deepen its roots in the market and dominate it. International marketing is the process
of making decision of a marketing mix relating to the potential market outside the company’s
domestic market. However, the process of creating an international image of the company
requires a long set of research list. As supported by Mu et al. (2015, p.15351), every country in
the world has their own rules and regulations that they follows. Different cultural beliefs,
thinking style, tradition creates a barrier for the company to attain the market of a specific
country. Thus, to overcome these barriers the company will have to do a whole lot of research
that will provide them with significant information. This information will help the management
of the company to prepare and implement effective and efficient strategies that will help them to
popularize successfully the brand as well as the product in a foreign land. The ability of the
company to adjust to the different tradition and culture of a country contributes towards its
successful establishment in that part of the world. The most important responsibility of the
company is to respect the value and beliefs of the people that they aim to attract. The
international business of a company helps it in receiving an excessive support in the revenue of
the company. Proper designing and development of a product according to the needs and
requirements of the people will help it in creating a good impression in their minds.
Several factors influence the marketing strategy of a company as per the international
context such as:
Cultural Factors are the factors that represent the language, taste, regional values,
individual habits and age or demographics.
As supported by Simpson (2015, p.99), language is the first barrier that threatens the
success of marketing of a product. For proper connection with the consumers, it is very
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important to proper communication with the consumers. The management of McDonald's will
have to communicate all the information and company's aims and beliefs to the consumers in
their preferred or local language. Every detailed information about the quality, price, ingredients
used, and services provided shall be communicated with them in the preferred language. Hiring
local people as employees and representatives of the brand will help the company to create a
strong connection with the people of the specific country.
Taste is another aspect that influences the success of the product’s success in a specific
country or region. A person that belongs to different background or culture possesses different
tastes and preferences. The marketing team of McDonald's will have to identify those tastes and
flavours that will help them in popularising their food products in a foreign country.
Regional values are also one of the factors that the company will have to consider to promote
successfully their product in a foreign country. To attract the consumers McDonald’s will have
to identify the different cultural population that exists in a specific region of a country. This will
help the company to prepare different flavoured food in accordance with the different tastes of
these cultures in the region.
Economic Factors are the factors that reflect the economic situation of a particular
country. This information helps the company to make and produce products according to the
financial position of the population of a country. The cost of the manufacturing and product that
will be offered in the market will play an important role in its success.
Lastly, the rules and regulations also help in preparing a proper plan for the marketing strategy of
a company. Laws, Licensing permits, taxes, tariffs are some of the regulations that a company
have to fulfil for performing legal business in a specific country. This will help McDonald's to
enjoy a precious advantage over the other rival companies in the country.
Distribution: Distribution is a process to meet the product with customer and
others. Company use distribution factor to provide supply on time. Mc Donald company
use distribution policy with the help of transportation service. Company can distribute
their product at any place but company have to select a transportation media to send
goods. Mc Donald interact with transportation channel to distribute product.
Financing: Mc' Donald company arrange the finance from different kind of
resources. Company deal with share market and financial firms to arrange the finance
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for the purpose of production or any thing. Mc Donald interact with the financial firms
and channel.
Market research:- Market research is necessary to analyse about market, find out
the position of market, and update their product according to market need. Mc Donald
company should complete the analysis about their competitors, If any changes is
required in product so company can update their product. Company interact with their
competitors and compare between products to make effect able.
Pricing:- Pricing is a parameter of product. A company make their product and decide
the price for customer. Company decide the price on the basis of production cost of goods.
Company pay money to raw material, packaging of product and other things. Mc Donald always
deal with food company and pay money for food raw material.
Product and service: Company make the product and provide that to customer as well
as service also. Mc Donald company deal with both department production and service.
Company make product and distribute that product to their channels. On the time of sale of good
company provide service facility to their customer. Company interact with the service facility
also.
Promotion: McDonald company use many things to promote their product. Mc
Donald can deal with advertising company, magazine company to promote the
company and company product.
Selling: Company make product and sale that product to others. Company use
many channels to sale product. Mc Donald use better strategy to sale its product and
interact with other companies to increase the sale of product.
Task 2
P3. Discussing the implementation of 7 P’s of marketing mix by McDonald’s to achieve business
objective
Implementation of 7 P’s of marketing mix
Price - The primary aim of setting a price is to make the product affordable for the
targeted market sector, which indicates the targeted customers. As mentioned by Han and Ryu
(2009, p.487), customers have the perception that the price of a product reflects its quality. This
helps in building a perception of the product in the customer's vision. The price determines the
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organisational profit and its survival. As suggested by Gaur and Fisher (2005, p.377), any
adjustment in price might impact the marketing strategy and sales and demands of the product
simultaneously. Different factors that influence setting a price such as production cost, perceived
customers product value, an impact of decreased price on the market share needs to be evaluated.
In the case of McDonald’s, the price is maintained by the strength of their branding and other
brands supporting their consistency concept and price.
McDonald’s is setting the price in such a way that the product is affordable by customers and
focuses on the customer's needs. For example, happy meals for children have been an effective
measure as it is an appropriate quantity and price for children.
Promotion- As suggested by Villarejo-Ramos and Sanchez-Franco (2005, p.431),
promotion is one of the significant features of the marketing mix as it boosts sales by increasing
brand recognition. It is a mode of communication through advertisement by which customers are
made aware of the products and to make the purchase of those services. This increases sales for
the organisation thereby, increasing market share. Various elements of promotion such as
organisation sales, public relations and promoting sales are incorporated during the development
of the promotional strategies. As asserted by Berger and Bechwati (2001, p.49), the promotional
strategies are dependent on the budget to a large extent. Promotion for McDonald's is done
through television, radio and billboards. However, use of slogans for specific products might
allow the customers relate to the product more and satisfy them. This will make the customers
remember the products and visit nearby locations. Advertising the product by various celebrities
also enhances promotion, as customers find their role models they can relate more.
Physical evidence- Physical evidence can be established by delivering the product and
the better facility to the customers. As suggested by Vignali (2001, p.97), physical evidence
determines the extent to which the launched product will be perceived by the customers of the
current market. Physical evidence allows the business and the product to make and establish their
presence in the market by building customer’s perception. The quality of the brand is established
before purchase thereby, enhancing the brand image. The service needs to be of enhanced quality
and fast in case of McDonald's so that whenever customers think of fast food they think of
McDonald's.
People- People are more related to business and target market. As suggested by
McDonald and Wilson (2011, p.456), extensive research needs to be carried out to discover the
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demand for the product among the targeted customers. The employees of the organisation play a
significant role as they provide the service. As recommended by Eaglen et al. (2000, p.333), the
organisations need to recruit the right people and train them appropriately to offer high-quality
service. This will allow them to provide honest feedback about the business that might be
incorporated in developing the business. The employees of McDonald's are treated with respect
and courtesy as being the satisfied employees they deliver quality services, thereby, satisfying
the customers. This also encourages their employees to work harder and appreciate their job.
Surveys carried out to find the requirement of the customers of McDonald’s so that their
demands are met and satisfied during implementing the marketing mix plan.
Product- Product is the main element which is built depending on the customer’s
requirement and to satisfy them. According to Leung and Leung (2002, p.703), the organisation
needs to choose an appropriate product for their targeted customers in the market that might be
done by extensive research. Moreover, reinventing of the products is essential to trigger its
demand among the customers. The main feature of an organisation is to offer a better product
compared to the competitors that satisfy the customers. As asserted by Hallak (2006, p.238), the
quality of the product is a significant feature for any product to get accepted in the given market
share. A wide range of products is available in McDonald's that satisfy a huge range of customer
group. It is based on the choices of meats for the burgers and vegan menu. Special menus for
children with many choices are offered to create greater acceptance of their product.
Process- As suggested by McDonald et al. (2001, p.335), the processes involved in an
organisation affects the service execution. It can be helpful in minimising cost. The set of
activities involved delivering the customers satisfactorily. This might include sales plan,
distribution system and other systemic steps for the product. McDonald's design process is by
flowcharting and detecting system failures and monitoring service performances.
Place- Place is significant as this allows choosing the location and distribution of a
product that is easily accessible for their targeted customers. As suggested by Vignali (2001,
p.97), this is done by developing a deep understanding of the targeted market section and
positioning and distributing efficiently. McDonald's selects the appropriate location for their
outlets that is easily accessible for customers such as families and kids.
Criteria of pass merit:- When a company get the any result related marketing between
40% to 59% it is pass position of marketing. If company get 60% to 79% it is the merit position
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of company. If company get any result between 80% to 100% it is the distinct position of
company in market.
Figure 1 - & P's of Marketing
(Source - Han and Ryu, 2009, p.487)
Difference in implementation of marketing mix with other organisation
The marketing mix of McDonald’s differs from that of other fast food organisation such
as Burger King. A difference is noticed in the price of their menus and variety. Burger King has
more menus at a lower price compared to McDonald's. The menus are easier to understand and a
wide range of products is available for the customers. In comparison to McDonald’s, Burger king
offers the provision for self-help for drinks and kids place to play. The drive-thru is the most
significant benefit provided by Burger king for customers with less time and long distance.
Burger king facilitated taking orders via telephone that helped them to cope up during the busy
hours. Application of such strategies by Burger King has been able to grow they market and
customers. Furthermore, having franchise provides an opportunity to earn greater revenue for the
organisation. This allowed huge profit earning for Burger King. This increases organisation
profit and sales for Burger King.
Based on the differences more menus with fewer prices need to be incorporated by
McDonald’s. This will facilitate more customers and increase their sales. This would also be
handy for the employees and the customers. Moreover, allowing the facility of drive-thru might
increase the customers will less time and students who prefers McDonald's but cannot afford as
its time consuming. However, also in order to cope with the rush during busy hours, allowing
phone order might increase sales. This might satisfy the customers as they won't have to wait for
long for their orders. In order to earn more revenue for the organisation, McDonald's needs to
spend in the franchise.
Task 3
P4. Developing and analysing basic plan for marketing
A marketing plan is developed for McDonald’s in order to launch a new product. As
suggested by Kotler (2009, p.1236), segmentation, marketing and positioning (STP) is an
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essential concept while studying and applying in the marketing mix. In order to develop a
marketing strategy, understanding the targeted customers is essential.
This might allow the company to communicate with the customers. A better
understanding of customers provides an opportunity to communicate and market to the
customers. As asserted by Solomon (2014, p.258), an organisation might segment their market
based on demographic, psycho graphic and behavioural. McDonald’s might segment the product
to be launched based on family, kids and students as their target customers.
Segmentation will help to divide the large market into smaller groups, address their needs, and
satisfy their needs. Demographic segmentation for the product to be for McDonald’s done is for
kids, families and students. The product is also launched for kids that include a free toy for them.
The environment is made friendly for students so that they can hang out with friends during
lunch. The psycho graphic segmentation is based on the convenience and lifestyle of the targeted
customers. As beef is the major meat intake for the population, the product launched mainly beef
product. McDonald’s made their outlets a place to relax by providing entertainment means. The
positioning of McDonald’s new product is done by emphasising of sponsorship of sports and
events.
Targeting might allow McDonald’s to select the group of customers such as family, kids
and students. Therefore, based on the targeted customers McDonald’s might develop the product
such as its price, place and promotion. This will make the product more acceptable to the
targeted customers thereby, maximising its sales.
The positioning of the new product to be launched is essential to create an image of the
product. This might be done by making the customers think that McDonald’s is a place of
healthy food variety. This might be done by incorporating experts and organised people. The
advertisement of the product needs to focus on the health benefits and qualities of the product.
The fact that the new product is cholesterol free is a product uniqueness that needs to be
advertised to the customers. McDonald's needs to target adults, as they will be able to able to pay
for both quality and variety. McDonald’s might implement positioning by manipulating the 7 P's
of the marketing mix.
McDonald’s might use the marketing plan to make the product that will be launched
accepted by their targeted customers and maximise customer satisfaction. McDonald’s undertook
one such marketing strategic plan in 2008.
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