Hospitality Marketing Essentials: McDonald's New Product Launch Plan

This report provides a comprehensive marketing plan for McDonald's, focusing on the launch of a new product: oil-free French fries. It begins with an introduction to marketing within the hospitality industry and its importance in building brand image and customer loyalty. The report then outlines McDonald's mission and objectives, followed by a detailed marketing plan. This plan includes a company overview, SWOT and PEST analyses, marketing objectives, and strategies such as segmentation. The report also outlines tactics including product details and action plans with budget allocations. The conclusion highlights the role of marketing in the hospitality industry and its impact on profitability. References from marketing research are included to support the analysis.

Hospitality
Marketing Essentials
(Activity-2)

Content
• Introduction
• Relation of marketing in context to organisation
• Mission and objectives of McDonald's
• Marketing plan for launching a new product by McDonald's
• Conclusion
• References

INTRODUCTION
Marketing consists of all the activities of an organisation which helps it
in promoting its product or services in the market. For the success of
any product or service in the market, it is important that it is
communicated in the correct manner, to the right people, at the right
place and on right time. In a hospitality industry marketing plays an
important role in building the image of organisations, attracting new
customers and maintaining loyalty of old customers.

Relation of marketing in context to
organisation
Marketing department functions in an organisation in relation to other
functional departments and coordinates and integrates with them so
that the objectives of organisation can be efficiently achieved. These
relations are discussed below :
Interrelation of marketing and production departments : These
departments needs to work closely as the marketing department
gives information by the way of market research about products and
services that needs to be produced depending on the customer's
demand.

Mission and objectives of McDonald's
The company plans on introducing oil-free French fries in the market.
Goal : The company aims at serving goof food that follows high
standards, in a friendly and fun environment, to be socially
responsible and provide good returns to it stakeholders.
Mission : To become a favourite place for customers to eat and drink
fast food.

Marketing plan for launching a new product
by McDonald's
Marketing plan is a detailed business document which provides an
outline of the business strategy and tactics that are to be followed in
a company for achieving the objectives of marketing within a
specified time-frame. It includes a description of current position of
a company in the market, development of marketing-mix,
advertising and other marketing efforts that will be used in order to
achieve marketing goals.

Company Overview
McDonald's corporation is an American fast food company which was
founded in 1940. McDonald's is the largest restaurant chain in the
world and is best known for its hamburgers, cheeseburgers and
French fries. The company plans on introducing oil-free French
fries in the market so that the customers who are diabetic can also
enjoy their French fries.

SWOT Analysis
Strengths
McDonald's has a strong brand image which
can help it in capturing the market easily.
The food brand has largest market share in the
world.
Weaknesses
In some franchises, food quality issues are
noticed.
It can increase fast food consumption among
diabetic patients.
Opportunities
The sales can increase as the untapped market of
diabetic patients can be captured.
Diversification in the food through this can be
achieved.
Threats
The increasing trend towards a healthy lifestyle
among customers.
The threat of getting imitated by other businesses
can be a threat for the company.

PEST Analysis
Political factors The government of UK requires the food industry to follow strict
regulations and laws under Food Safety Act 1990, so that good quality and
safe food can be provided to the customers.
Economic factors The economic conditions in UK is stable and the purchasing power of people is
high which gives advantage to McDonald's in introducing new product.
Social Factors People in UK have busy life and so they require fast food that can be quickly
collected and consumed. Also increased number of people are becoming
diabetic which will benefit the company in introducing food that can be
consumed by these people.
Technological Factors The technology is highly advanced in UK which can help McDonald's in
purchasing machinery that can prepare French fries that are oil-free and can be
consumed by diabetic patients.

Marketing objectives
The objectives of McDonald's is to increase its market by 30% with the
launch of oil-free French fries in the market within 6 months and
increase its revenue from sales by 40% within a year.

Marketing strategies
Marketing strategies helps the company in identifying their target
markets so that the sales can be increased by correctly positioning
the [product in the market.
Segmentation : It is dividing the large market into smaller segments on
the basis of demographic, geographic, psycho-graphic and
behavioural features so that audience with same level of interests
can be targeted. McDonald's segments its market on the basis of
geographic features.

Tactics that can be used by McDonald's
Product
McDonald's is a food service business which deals mainly in
hamburgers and sandwiches, snacks, beverages etc. The company is
introducing oil-free French fries in the market so that the diabetic
patients can also consume them which will help the company in
increasing its sales and capturing a large market share.