Analysis of Marketing Techniques: McDonald's and Tesco Report

This report delves into the marketing strategies of two prominent businesses: McDonald's and Tesco. It begins with an introduction to marketing, defining its role in managing customer and company relationships to ensure mutual satisfaction. The report then analyzes the marketing techniques employed by McDonald's and Tesco, including promotional techniques like television advertising, billboards, and packaging, as well as pricing strategies such as promotional pricing and penetration pricing. Product techniques, such as the product life cycle, and place/distribution techniques, like routes to market and channels of distribution, are also examined. The analysis highlights how these techniques are relevant to each organization, considering their impact on sales and customer base. The report also acknowledges potential negative impacts, such as customer feedback and brand reputation. Finally, it recommends improvements to the marketing techniques used by McDonald's, focusing on enhancing its strategies for business expansion and customer attraction. This report serves as a comprehensive overview of marketing practices within the fast-food and retail sectors, providing valuable insights for students studying marketing and related fields.

Unit Title:
Introduction to Marketing
Unit Number:
3
NOTE ON PLAGIARISM
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Please refer to your Learner Handbook to read the centres plagiarism policy
LO1 – Know the role of marketing organisations
P1/M1/D1
You need to research two businesses of your choice and work through the questions below.
Introduction Marketing refers to the study of managing and exchanging the
relationship among customers and companies in order to ensure
satisfaction of both (Rust and Huang, 2014). It is a major component for
the business organisations for gaining quick growth and success.
Marketing is a vital tool in modern business organisations as it involves
understanding of market places, demands of customers and marketing
strategy among customers. The current market within the global business
environment is emphasising more on marketing their offerings effectively.
McDonald's is an American food company founded in 1940 as a
restaurant. It is the world’s largest restaurant chain deals in fast food.
Tesco is a British multinational groceries and general merchandise
retailer. It is the third largest retailer in the world. This report is based on
the marketing techniques used in McDonald's and Tesco, analysis and
recommendations of the techniques. It includes limitations and constraints
of marketing. Also does the marketing research for making marketing
plans. It describes how the customers are targeted by the company and
how the marketing mix is relevant for the company and targeted
customers.
Organisation 1
Organisation
Name Mc Donald’s
Describe how
marketing
techniques are
used in the
marketing of
products in this
organisation
Give real
examples of
Marketing refers to carry off and dealing the relationship among customers and
companies and also satisfy their needs. McDonald's is one of the leading firms
in the restaurants and deals in fast food. Over the years, company has
redefined the ways of doing business in services. Tesco is a multinational
retailer which deals in food, mobile phones, clothing etc.. There are different
brands of Tesco stores and all are of different sizes. Various marketing
techniques are as follows:
McDonald's
Promotional Techniques
Television: It is a well-crafted advertisement method which helps
McDonald's in appealing to their targeted market. However, it is quite expensive
as it involves huge amount of investment because it is a commercial way to
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how they have
used these
techniques
{P1}
advertise a product and it is helpful in attracting the customers.
Billboards: They are consider as a premium advertising space as it grab
the attention of customers more frequently rather than any other promotion
method. McDonald's use this technique in order to attract more customers.
Press: It is visualising way by which McDonald's can attract the
customers through digital way. This method is affordable for both small and
large businesses and develop direct connection with the customers and it helps
in the direct selling of products with company.
Packaging: It is the most important element in the marketing techniques
for every company as packaging can attract more customers and also helps in
increasing the sales. This technique can affect the product and the business for
some time as change in packing of product will affect the purchasing of
customers. McDonald's use this technique as by providing take away service to
their customers with good packaging.
Pricing Techniques
Promotional pricing: This technique is used by manufacture and
retailers in order to gain the competitive environment. It is used by McDonald's
as it deals in manufacturing and retailing both in order to make their customers
aware about the product and the quality. Whereas retailers use this tool to
attract many customers by offering price discount to them.
Penetration pricing: It is a marketing strategy which is used by
McDonald's to attract more customers. In this technique, initially they offer lower
prices which help them to develop their customer base or faithful customers.
Once they develop their customer base then company rise their prices and get
back to the normal price of the offered product.
Product Techniques
Product life cycle: It is a technique which is used to support, monitor
and maintain a product. This cycle is divided into four parts:
● Introduction: In this stage, McDonald's spread awareness about the
product and establish a market for the specific product. This step impact
the product, price, promotion and distribution of the launched product.
● Growth: In this step, McDonald's try to increase their market share and it
includes the additional features and services in the product and maintain
the demand of competition.
● Maturity: Here, the growth of the product or sales decreases.
Competition of the product gets develop which may cause similarity of
products. It is a stage where a product reached at its peak point where
its demand and price both are high.
● Decline: It represents that every product reach at a point where its
demand and price both get low. It can happen because consumers get
switch from different type of product or the market become saturate.
Place/Distribution Techniques
Routes to market: It describes that how company sell the product and
their strategies and plans for sale. It is a very powerful technique in order to
drive profitable growth and used to take their products and services in market in
the most possible manner. This tool is used by McDonald's in order to sell their
products most effectively and to gain the competitive advantage of the business
environment.
Analyse the
marketing
techniques
used in the
Process of collecting information about market or audience is market
research (Pike, 2015). Above mentioned marketing techniques are used by
McDonald's and relevant for it as these techniques increases their sales
and profit and also helps them to develop their customer base. By the
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marketing of
products in this
organisation
{M1}
above techniques McDonald's can get free advertisement initiation by the
customers experience. Moreover, it can put negative impact as customers
can spread rumour among audience and also on social media about the
company and products.
Organisation 2
Organisation
Name
Tesco
Describe how
marketing
techniques are
used in the
marketing of
products in this
organisation
Give real
examples of
how they have
used these
techniques
{P1}
Tesco
Promotional Techniques
Radio: It is a audio promotional technique and suitable for all type of
organisation in order to explore their marketing opportunities. There are various
ways by which radio advertising can be done such as live event sponsorship,
engagement of community, social media promotion and many more. This
technique is used by TESCO to promote their product and attract more
customers.
Internet: Keep the product and company details updated on internet is
the best way to attract customers towards company. In modern era, people first
visit the company's website and also see reviews of their products. For example,
TESCO always keep its details updated on internet and respond to every
customer's query patiently.
Personal selling: It is a technique used by TESCO, and in this they hire
many people for door to door or face to face selling of product. Here, selling of
product depends on the personality, attitude and appearance of seller. Their
purpose to motivate the customers to buy or at least try the product.
Direct marketing: It is a promotional technique which involves
presenting the information about the company or the product in order to target
customers. In this technique, there is no middleman required to advertise their
products and services.
Pricing Techniques
Price skimming: It is a pricing strategy which is used by TESCO, in
which the marketer initially set high prices for the product and after some time
they reduce the prices. Here, selling of the product depends on the reputation of
company or brand image. Its objective is to capture the consumer surplus
before the product life cycle in order to exploit the monopolistic position.
Cost plus pricing: It involves the markup to the cost of goods and
services in order to arrive at a selling price. Here, company determines the cost
of the product and then add some amount in the price in order to determine the
selling price of customer.
Product Techniques
New product development: It is a process of bringing a new product
into the market. This technique is adopted by TESCO as it attract the customers
by introducing or launching new product into the market as per the requirement
and demand of the customers. Company need to do this because of frequently
changing preferences of customers, increased competition or to update its
technology.
Place/Distribution Techniques
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Channels of distribution: It is a chain of business by which they
transfer or passes their product and services to the final purchaser. These
channels include suppliers, wholesalers, retailers and many more. It also
include the payment method from the customer to the seller. This technique is
used by TESCO in order to transfer their customers from one place to another
place.
Analyse the
marketing
techniques
used in the
marketing of
products in this
organisation
{M1}
Gathering the data and information about consumers is market research. By
above techniques TESCO can see its actual image in the market or in the
eyes of customers. Sometimes they also give negative results due to
different opinions and taste customers can give negative feedback to them.
And further it can develop threat on the company's reputation and can decrease
their customers base.
Select one of the two organisations you have
mentioned above and recommend
improvements to the marketing techniques it
currently uses
Organisation
Name
McDonald
Recommend
improvements to
the marketing
techniques in
this organisation
{D1}
McDonald's is a leading firm in restaurants and fast food. Here to expand its
business, success and for survival we'll give some recommendations to
McDonald's. Word of mouth is a way attract to more customers (Midgley, 2014).
This happens when you provide good services to customers. It is necessary to
understand why people recommend McDonald's and then how company can
persuade them into talking more. Face to face networking is a best way to reach
these influencers and it is recommended that the company give two business
cards to customers so that they can pass on one to new contact. Internet
marketing sometimes put negative impact on the mind of customers when there
is lack of communication between company and customers. So, it is
recommended that take the timely respond to a personal inquiry and it builds
your authority.
P2
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Introduction to Marketing
Unit Number:
3
Describe the
*legal
*voluntary
*organisational
*ethical
Limitations and
constraints of
marketing
{P2}
Marketing plays a vital role in shining the marketing performance. It is one of
the basic task of modern marketing. So, it is not free from limitations and the
marketing manager must be aware of these limitations.
Legal: Consumer law is a legal area which focuses on providing
protection to customers when they buy something. This legal system is
designed to protect the customers against issues such as fraud, mis-selling
etc. There are certain rules which the company must stay on if their sales
strategy involves selling to customers at their place. Getting company's
message across by TV and radio can give a significant marketing reach.
However, broadcast advertising is subject to a wide range of regulations so
company must do research before undertaking this type of campaign. There
are some legal rules such as Consumer Credit Sale of Goods Act, Sale and
Supply of Goods Act and Consumer Protection from Unfair Trading
Regulations Data Protection Act which aware the customers when it comes to
online marketing such as law on cookies and payment method etc. There are
some legal rules which customers need to aware when it comes to online
marketing such as Consumer Rights Act 2015, Product Safety Act 2005,
Financial Services and Markets Act 2000, law on cookies and payment
method etc.
Voluntary: The businesses are able to say about what they provide
and what they are not able to say this activity in marketing has to include
under policies. There are some set of rules such as advertising authority,
codes of practice and conduct which businesses need to follow such as they
should keep themselves within the legal framework and they need to provide
protection to their customers like misleading and fraud. This constraint is
about decent in terms of quality, honest and not mislead their customers,
companies must show their social responsibility and marketing should follow
legal legislation.
Organisational: It refers to the hurdles which will come in passing the
information to employees which will create failure of an organisation. Here, the
target customers for organisational marketing is organisation itself. In which
the conflicts among the functional areas and the suggestions and opinions will
lead to create confusion between employees. The confusion and conflicts
arise among them will affect the culture and ethics of organisation.
Organisational marketing increase sales and when sales increases the
amount of goods made need to maintain demand, if this does not happen then
company suffers.
Ethical: Ethical problems in marketing are conflicts and disagreement.
Companies in marketing brings a set of expectations like how the relations will
build or exist and how the transactions would be conducted. A company who
fails to tell the truth offends against the morality. Advertising of certain
products may strongly offend some people. Through negative advertising
technique, the advertiser highlights the disadvantages of competitor products
rather than the advantages of their own. Free market who seeks profit
contains integral ethical issues. However, business ethics sees a barrier which
suggest that the firms should purchase stuff from local businesses for the sake
of local employment and economic growth.
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Unit Title:
Introduction to Marketing
Unit Number:
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Unit Number:
3
LO2 – Be able to use marketing research and marketing planning /
LO4 – Be able to develop a coherent marketing mix
You need to research an organisation of your choice and work through the questions below.
You will need to describe how this organisation uses primary and secondary research in its
marketing plans
P3
Name of
Organisation
Tesco
Using examples
describe how
this
organisation
uses marketing
research to
contribute to the
development of
its marketing
plans
(You need to
describe how
the organisation
uses both
primary
and secondary
marketing
research in the
development of
its
marketing
plans. The
description
should cover
the type of
research
undertaken
(primary,
secondary,
quantitative and
qualitative) as
well as the
methods used
and
how the
information is
Marketing Research is a process of gathering the information about the target
market and the target customers (Luxton, Reid and Mavondo, 2015). It provides
an in-depth knowledge about the customers behaviour in order to satisfy the
needs of their potential customers. Market research is of two types Primary
research and Secondary research which includes quantitative and qualitative
market research data. The data gathered from different types of marketing
research can be both external or internal.
Tesco is known as one of the largest shopping retailer in UK. They offer
a wide range of products and services. To get successful in the long run, Tesco
need of carry primary and secondary market research to get insight of on what
areas they are succeeding and what they need to improvise.
Primary Research: It is a kind of research which is carried out by organization
on its own to get the first hand information about market or potential customers.
Primary research is carried out using face to face, Questionnaires,
Surveys (includes e-mail, online, panels, telephone, web portal) or
customer interviews.Tesco take help of primary research to know how their
products and stores are proceeding and how they can improve their business. It
include collection of:
 Qualitative Data: This type of data gives the in-depth knowledge to
Tesco about what and how customers get satisfied and how they can
improvise their services. Tesco did the survey with a purpose of
analysing what their customers buys the most for developing marketing
plans.
 Quantitative Data: Tesco uses the numerical data to get the insight of
which products or services are most profitable and which products are
bought frequently from their stores.
Secondary Research: It is a type of research data which is obtained from
other sources and include desk bound research and internet research. They
uses the data that would be collected from external sources.
 Internal sources: It refers to the collection of information within the
organisation or any source which is internally based. These sources are
need to consider while doing research in order to get desired outcome.
These sources include accounting information, statistics, salesman
report and many more.
 External sources: The need of these sources are arise in order to
identify marketing problems which are based on the research. There are
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used in the
planning
process.)
{P3}
various sources which are considered in the external sources such as
government, competitors, media, trade publications etc.
P4/P6/M2/D2
You recently set up a new business
which will be selling a new mobile
phone called the ULTRA PHONE 4 and
you have contracted a marketing
company called ‘Lightening Market
Research Ltd.’ to carry out market
research on what sort of phones
consumer like.
Prior to receiving the results of the
market research you were initially
planning on:
● selling the phone at £450. Your
competitors currently charge
£300 for phones similar to yours
● only having one choice of colour
as you currently can only make
one choice of colour
● selling the phone only in Europe.
Currently there is a shortage
mobile phone competitors in
Europe but strong demand for
variety from consumers
● using a Windows based
operating system software
though you have a very
experienced technical
department who can work with all
the operating system software
available
They have provided you with some
market research which you need to use
to make plans for marketing the new
phone
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You will develop your marketing plan by
carrying out a SWOT analysis and
creating marketing mix
Lightening Market
Research Ltd.
The research is based on surveys
carried out with 6,000 people which is
broken down into the following
demographics all of whom lived in
Europe:
Male: 3000 people | Female: 3000
people | Age 13 - 18: 2000 people | Age
19 - 49: 2000 people |
Age 50+: 2000 people
How much are people willing to
spend?
5% of those surveyed would buy a
phone that costs £400+
20% of those surveyed would only buy a
phone that costs less than £100
50% of those surveyed would only buy a
phone between £101-£199
25% of those surveyed would only buy a
phone between £200-£400
What tech specification do people
want?
70% of those surveyed have a
preference for a Android based
operating system software
30% of those surveyed have a
preference for a Windows based
operating system software
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When asked to choose between
camera quality and audio quality:
67% of people chose camera quality
33% of people chose audio quality
What type of advertising grabs your
attention the most?
55% of those surveyed said TV
advertising
30% of those surveyed said online
advertising
5% of those surveyed said email
advertising
10% of those surveyed said mobile
advertising
Demographics
Age 50+:
This group of customers had a
preference for a more basic phone
available in one or two conservative
colours. This group generally had a
preference for phones costing between
£101-£199. This group also had a
preference for better camera quality
instead of audio quality as they enjoyed
taking pictures of their family especially
of their children and grandchildren. This
was consistent across both the males
and females in this group
This group had a preference for TV
advertising as they spend more time at
home than they used to when they were
younger and pass time watching TV or
listening to the radio
This group was split evenly between the
Windows and android operating system
Age 19-49:
This group of customers had a
preference for phone in the £200-£400
price range and they also make up all of
the people who said they would spend
£400+ on a phone
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This group was split evenly between the
Windows and android operating system
This group had a preference for having a
choice of colours they could choose
from. The also mostly had a preference
for camera quality overall as a group
though males did show a higher interest
in audio quality
Age 13-18:
This group of customers would like many
options of phone colour and also very
bold colour options.
This group of customers had a
preference for the android operating
system as they were used to this
operating system being available in
more affordable phone
Overwhelmingly the preferred price point
for this group was £100 or less. This is
likely due to age
When it comes to a choice between
camera quality and audio quality the
males in this group had a slight
preference for audio quality but the
females had a preference for better
camera quality
This group spends the majority of their
time on their phone or online on social
media and feel they respond and
engage with advertising on these
platforms more than any other
Carry out a
SWOT
analysis for
the new
phone based
on your
initial plans
taking the
market
research
from
‘Lightening
Market
Research’
Marketing Plan is a blueprint of all of the firm's marketing activities which
helps to achieve the marketing objectives (Hanssens and Pauwels, 2016).
The company uses marketing plans for identifying the potential market
opportunities and threats which helps them to grow in future period.
Company Description : LIVO is the mobile phone company who is
planning to set up a new business by introducing the new mobile phone
named as ULTRA PHONE. The Livo Company has appointed “Lightening
Market Research Ltd.” to conduct the market research to identify what type
of phones are liked by the potential customers.
SWOT Analysis for the New Phone
Strengths: In terms of strengths, Europe market has a large
number of users of mobile phones which indicates that in Europe there is a
huge demand for mobile phones. Also, the Livo company have a
knowledgeable technical department who have a good experiences to
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into
consideration
Simply
creating a
matrix/tale is
not sufficient
you need to
explain each
element of
your ‘SWOT’
{P4}
work with all operating software .
Weaknesses: In terms of weaknesses, ULTRA PHONE 4 offered
by a company would be available in only one colour which limit the choices
for the customers as young age people are mainly concerned with colour
options available. The price charged by Livo for ULTRA Phone 4 is £450
which is higher than competitors is also considered as a weakness of the
company.
Opportunities: In terms of opportunities available for company,
they may try to lower the costs to manufacture the new mobile phones
which can help them to offer their new phones at affordable price. The
company can expand their market share to other countries as well to attain
larger growth in the market. Also, Livo Company had an opportunity to
develop their phones using variety of operating systems as they had
technical department who can work with any operating systems.
Threats: The prices charged by the competitors is low for the
same mobile phones and competitors are selling the same phone in
different colour options available which can be a threat for company as
competitors will fetch their market share.
Decide on a
target customer
group and state
it here
(you can
choose more
than one target
group)
{P4}
The company should select a group of customers having the age
between 19-49 as their target customers. The marketing research of
“Lightening Market Research Ltd.” indicates that these age group people
would prefer to buy a phone in £200-400 price range which is near to the
company's offering. Also, they do not have a strong preference regarding
the operating system so they can easily shift to either windows or android
based operating system.
Develop a
coherent
marketing mix
for the new
phone specific
to your targeted
customer group
taking the
‘lightening
market
research’ report
and any
changes you
have decided to
make to your
initial plans(if
any) into
consideration.
{P6}
Marketing mix is a group of elements that every businesses use to
promote and sell its products or services in the market (The Marketing Mix,
2019). These elements ranges from entering of new product, deciding its
prices and places to selecting the communication strategies for the
product. The elements of marketing mix includes:
Element
s of
Marketin
g Mix
Definition Livo Company
Product Product is an item that is
manufactured by the
company for sale to
satisfy the customer
needs (Boehner and
Gold, 2015).
Product sold by Livo is “Ultra Phone
4”.
Price Price is the value of a
product that customers
need to pay in exchange
of product.
Livo is planning to use price
skimming strategy for their ultra
phone 4 to earn higher profit in
introductory stage. They had set
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