McDonald's UK Marketing Essentials: Strategy, Mix, and Planning

This report provides a comprehensive analysis of marketing essentials in the context of McDonald's UK. It covers the concept of marketing, different marketing processes, and the role of a marketing manager. It also examines the influence of marketing on other departments, the value of marketing within the organization, and the significance of inter-departmental relationships. The report compares McDonald’s application of the marketing mix with other organizations like KFC and presents a strategic marketing plan aimed at achieving business objectives, sales, and profits for McDonald's UK. This document is provided by a student and available on Desklib, a platform offering study tools and resources for students.

Marketing Essentials
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Table of Contents
Introduction................................................................................................................................3
1. Introduction to the concept of marketing including current and future trends......................4
2. An overview of the different marketing processes................................................................5
3. Explanation of the role and responsibilities of a marketing manager in the context of the
organization................................................................................................................................6
4. An explanation of how marketing influences and interrelates with other functional
departments of the organisation.................................................................................................7
5 The value and importance of the marketing role in the context of the organisation...............7
6. Conclusions that emphasise the significance of having effective interrelationships between
different functional departments................................................................................................8
7 Compare the ways in which the chosen organisation applies the marketing mix to the
marketing planning process to achieve business objectives. How does it differ from other
organisations or could do better compared to other organisations (with examples)..................9
8 Produce and evaluate a basic marketing plan for the chosen organisation...........................13
Conclusion................................................................................................................................18
Reference List..........................................................................................................................19
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Introduction
Marketing has emerged as an increasingly important activity for an organization to achieve
high sales, profit and consumer preference. With changing market trends and business
scenarios, it has become imperative for marketing managers to understand customer demands
and execute strategic marketing plans to secure the company’s hold on the consumer
segment. This report aims to study the concept of marketing along with the roles and
responsibilities of the marketing manager, and the impact and interrelationship of marketing
with other departments of an organization, in this case, McDonald’s UK. The perceived value
and importance of marketing is also studied, along with the importance of inter-departmental
relationships. The report additionally attempts to list and analyze the ways in which
McDonald’s makes use of its marketing mix and to compare it with the marketing mix of
KFC. Finally, a strategic marketing plan for McDonald’s is developed, aimed at aiding the
company in achieving business objectives, sales and profits.
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1. Introduction to the concept of marketing including current and future trends
The marketing concept can be segmented under five different categories and they are as
follows:
Production Concept
In case for McDonalds, as the organization deals with the food sector, it is essential for the
organization to understand the paying capacity of the targeted customers in order to serve
them the right product with right pricing. Customers are always price sensitive; they tend to
get the best quality products or service by spending less. This is a vast area that the chosen
organization must understand in order to serve the customers. The production concept also
concentrates on the product availability in the market.
Product concept
The product concept involves the requirement and demand of the product. According to the
product concept the customer buys the solution for their needs and wants rather than buying
the product. Thus, it is essential for McDonalds to indentify the requirements of the
consumers and develop the product in a manner that it would be satisfying them. The product
must be developed keeping in mind the quality and sustainability of the product. As the
consumers now a days are much more concerned with the quality and sustainability of the
product. This marketing concept is also utilized to target the consumers for a specific product.
Selling concept
The selling concept is required to meet the organizational goals and objectives. With the help
of this concept McDonalds will be able to sell its products to the customers. The selling
concept comprises of proper marketing strategies regarding the sale of the products by
influencing the consumers to purchase the goods.
Marketing concept
Marketing concept of the company focuses on the requirements of the market they are
operating in. In case of McDonalds, they must analyze the market requirements and calculate
how the firm might come up and serve the customers with better quality products and
services.
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Corporate Social Concept
The aim of Corporate Social Concept is to create an impact of their presence in the market
among the consumers as well as the market and industry where the firm is operating. It also
constitutes of social activities regarding the welfare of the society and contributes towards the
growth of the society by donating some of the profits made by the firm.
2. An overview of the different marketing processes.
The different marketing process helps the firm to analyze the market to uphold the
organizational activities and tracking the requirements of the firm on specific intervals.
Analysis of scopes
The analysis of scopes in market is developed to ensure the effectiveness of McDonalds in
the market. Analyzing the scopes refers to the understanding of consumer and market needs
that are to be accomplished. It also helps the firm to recognize the growth opportunity as it
researches on the area of unsatisfied requirements. It also deals with the swiftness of
improvisation required by the audience targeted. The analysis is done to recognize the
opportunities present in the market and how much beneficial the opportunities are for the
firm.
Selection of target audience
Selecting the target audience is one of the essential stages of marketing. McDonalds requires
identifying the customers and must do proper segmentation for the consumers they are
targeting to provide goods and services. It is also necessary to meet the requirements of the
targeted audience. The process of selecting the target audience comprises of two steps
mentioned below:
Market Segmentation:
The firm will be dividing the market into segments as per the strategies developed to place
the goods based on the needs of the consumers in that particular market.
Market Targeting:
The company will be targeting the group of consumers segmented based on their gender,
income, and age to place and launch the products and services. It is done to develop effective
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strategies for positioning the firm and its product to compete with the existing players in the
market.
Developing marketing mix
Marketing mix is the most essential stages of marketing and almost every firm adopts the
marketing mix for the acceptance of product and create an impact on the market. Marketing
mix of McDonalds includes:
Product: The quality of the product must be good and improved
Place: The product manufactures must be available
Price: The pricing should be sensible
Promotion: Prominent promotions must be done to attract customers
People: The sequence of external and internal publics should be sustained for standard
growth
Process: Effectual work procedure can boost the trade structure and superiority of
manufactured goods
Physical evidence: Constant communication procedure should be maintained to show the
presence of the business
3. Explanation of the role and responsibilities of a marketing manager in the context of
the organization.
The marketing manager plays the role of analyst to analyze the internal and external
components affecting the organizational objectives. It is the responsibility of the marketing
manager to develop proper communication and coordination among the various departments
of the firm and make appropriate utilization of the resources as well as devise effective
strategies (Gktoday.in, 2018). The responsibilities and roles of a marketing manager are:
 To develop marketing strategies and to study the market for appropriate placement
of the strategy developed to acquire the best promising results.
 To keep up the bond between the clients and business. This outcome in building a
strong brand image
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 To direct the employees of the firm to ensure the departments of the company are
synchronized.
 To research the market and identify the scope for the firm to develop in the market
and to exploit the market conditions, which can be utilized for a benefits of the
company.
4. An explanation of how marketing influences and interrelates with other functional
departments of the organisation
Production function:
Marketing is done to collect information of the competitors in the market that might influence
the level of productivity (Dale and Plunkett, 2017). For example, if the production
department of the company decides to increase the production the budget planned by the firm
would get affected to meet the wages of more labours for manufacturing the good.
Finance function:
As it has been stated, the marketing is done to gather information of the rivals present in the
market for analyzing the impact on productivity level (Gitman et al., 2015). In case if the
financial department of McDonalds plans strategy for aggressive product selling then the
advertisement structure requires to be changed and if the firm plans to make changes in the
budget the finance department requires changing the structure accordingly.
5 The value and importance of the marketing role in the context of the organisation.
Marketing comprises of several strategies and skills utilized within McDonalds to improve
the market position of the firm and to create a strong brand image. In this case, marketing
includes branding, customer satisfaction, advertising, increment in productivity level
(Armstrong et al., 2015). It is necessary for McDonalds to evaluate the product value
provided by the other companies to the customers. Marketing strategies are developed to
create impact on the audience targeted and competitors within the market. It is the duty of the
marketing manager analyze the market, make effective coordination and communication, and
to look after aspects such as sales, transport, and production of the firm. Marketing also helps
in assessing the utilization of resources and production percentage to build up cost effective
strategies. It also involves maintain good relationship with the clientele of the firm.
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6. Conclusions that emphasise the significance of having effective interrelationships
between different functional departments
It is significant to have proper relationship among the various departments of the firm to
maintain the work environment as this interrelationship helps in increasing productivity level.
In A company like McDonalds, it is necessary to have interrelationship among the functional
departments to meet the organizational goals. It also helps the company to grow in the market
effectively. A good organizational culture makes the employees perform effectively and
deliver better quality of work. It also helps in maintain the flow of work to acquire positive
consumer feedbacks. Therefore, it can be concluded that effective interrelationships between
different functional departments helps the firm to gain competitive edge.
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7 Compare the ways in which the chosen organisation applies the marketing mix to the
marketing planning process to achieve business objectives. How does it differ from
other organisations or could do better compared to other organisations (with examples).
The marketing mix is an important tool for organizations to develop a suitable marketing
strategy based on consumer demands and market trends, among other business factors
(Londhe, 2014). The marketing mix essentially consists of several factors, known as the 7Ps-
Price, Product, Promotion, Place, People, Process and Physical Evidence. McDonald’s use of
the marketing mix can be explained through these seven elements as follows-
Price- The pricing of products offered by the company is important as it partially determines
the consumer’s purchase intention. McDonald’s, as a fast food chain, attracts customers and
maximizes profit by selling economy combo meals and offering discounts.
Product- McDonald’s specializes in selling fast food, primarily an assortment of burgers,
fried snacks, non-alcoholic drinks such as sodas and shakes, certain breakfast items and
coffee. The differentiating feature of McDonald’s products is that they all come under the
label ‘Mc’, such as ‘McBurger ‘, ‘McCafe’, etc. Another unique offering of McDonald’s is
the Happy Meal, a combo meal box that comes with a different toy every few weeks.
Promotion- Promotion is an important activity in the marketing mix, as it develops brand
presence and increases brand awareness amongst consumers, hence causing an increase in
sales (Singh, 2012). In order to promote its edible products, McDonald’s engages in print,
television and online advertising. McDonald’s also offers special combos and deals as well as
limited period food specials.
Place- McDonald’s has over 1250 outlets all over U.K. (mcdonalds.co.uk, 2018). Worldwide,
as of 2017, McDonald’s operates 37,241 stores spread over various countries (Statista, 2018).
McDonald’s sells and serves its food products via these outlets as well as through their
mobile application in several locations.
People- The people in the context of McDonald’s are the employees of the company,
primarily the staffs who directly interact with the consumers- the kitchen staff engaged in
cooking and cleaning, the serving staff, and so on. McDonald’s takes care to ensure that the
restaurant staffs are adequately trained and skilled to cater to customer needs.
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Process- The process carried out by McDonald’s includes all the services offered by the
company to the consumers. Thus, the process includes the sourcing of ingredients, the
preparation process, serving, packaging, transportation etc. McDonald’s takes measures to
ensure that the quality of its process is excellent so that it remains ahead of competition.
Physical Evidence- The physical evidence of a company consists of the physical location of
its offices, store outlets, documents released by it in the form of financial statements etc, the
company’s logo, product brand, and so on. McDonald’s has a large number of stores
worldwide with corresponding websites. It releases yearly statements and records, which also
count as physical evidence.
When compared with competitor brand KFC, the difference between the marketing mix of
McDonald’s and KFC can be observed as follows-
Marketing Mix Element McDonald’s KFC
Price McDonald’s has attempted to
price its food products
reasonably so that the
average U.K. citizen can
afford them. Additionally,
the restaurant has used the
strategy of bundling to
provide cost-effective food
combos. Unlike KFC,
McDonald’s does not have
its own reward system that
offers special deals to
member consumers.
KFC also uses bundling cost
strategy to offer the most
economical options to
consumers. KFC offers
special discounts and deals to
customers who are Colonel
Club’s members.
Product McDonald’s is known for its
variety of burgers in
particular, and other items
such as sides, fries, sodas,
shakes, coffee and a special
range of breakfast items.
McDonald’s unlike KFC
KFC’s USP and its main
speciality is its preparation of
fried chicken with an
undeniably unique taste.
Additionally, the restaurant
also sells burgers, wraps,
snacks, shakes and desserts.
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does not offer any halal
products. The restaurant
would benefit by considering
serving halal food to U.K.
consumers as the Muslim
population in U.K. is
considerable and is predicted
to rise exponentially (The
Telegraph, 2017).
Another speciality of KFC is
the concept of ‘bucket’,
which applies only to
different combinations of
their fried chicken. 110 of
KFC’s 900 outlets in U.K.
guarantee the serving of halal
food (kfc.co.uk, 2018).
Promotion McDonald’s engages in
promotion through
advertisement on print
media, television and online
via social media and its
mobile application.
Consumers have now begun
to prefer purchasing from
brands with sustainable
practices and methods
(Aschemann-Witzel,
2015).McDonald’s has
picked up on this trend and is
aiming to implement
increasingly sustainable
practices. This has helped it
gain a positive reputation as a
brand, and has promoted
brand awareness.
KFC participates in similar
promotion activities such as
advertising and provision of
discounts. However, KFC
has gone a step further to
promote its products, by
offering cost-effective
weekly deals as well as an
option of a complete free side
item recently to customers
who have their app
(mirror.co.uk, 2018).
Place McDonald’s operates
through its physical
restaurant locations as well
as through its mobile app.
McDonald’s has over 15000
KFC has around 900 physical
outlets all over UK, but due
to the recent delivery
problems, it temporarily
closed around 500 of these
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stores more than KFC,
beating KFC in success of
expansion.
outlets (The Telegraph,
2018). KFC has a total of
21487 stores worldwide as of
2017 (Statista, 2017).
People McDonald’s invests regularly
in training and developing
the skills of its employees so
that they provide optimum
customer service.
KFC similarly ensures that
the staffs at its restaurant
outlets are skilled at catering
to consumer demands.
Process McDonald’s has been
working diligently to ensure
that its operations processes
run flawlessly. In addition to
ensuring that its supply chain
movement is clear and that
customer satisfaction is being
met, the restaurant is making
efforts to improve the quality
of the processes.
KFC has been suffering from
chicken shortage issues due
to delivery problems
recently. Distribution issues
have only worsened, with the
restaurant now facing gravy
shortage (The Telegraph,
2018). This has adversely
affected the process of the
company.
Physical Evidence The physical evidence of
McDonald’s includes but is
not limited to its store
locations worldwide, its
mobile application, websites,
brand name and logo, the
‘I’m lovin’ it’ motto, the
trademark use of Ronald
McDonald as a mascot,
documents such as year- end
statements, charity events,
and its food products.
KFC’s physical evidence is
demonstrated by its
numerous restaurants all over
the world, its websites,
online presence, its products
like the signature fried
chicken, the ‘Finger-Lickin’-
Good’ motto, documents
listing its assets, mobile
application, etc.
Table 1: 7Ps of marketing
(Source: Created by the learner)
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