Task 1
Introduction
This section of the report focuses on the marketing strategy implemented by Macdonald’s in the workplace to maximise the sales of various products are services. The section allows us to identify and analyse the various concepts of marketing process, impact of the marketing environment, relevance of the consumer market and market segmentation in relation to the business model of Macdonald’s (Werner, 2013).
1.1 discuss concepts of marketing for a relevant services industry
McDonalds has been a popular brand name in the food and services industry from quite a long time. The gain and maintenance of the brand image of the organisation has been possible due to the development and implementation of various marketing strategies.
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All of these marketing concepts allow the management of the organisation to have an efficient and effective marketing strategy implemented in the workplace, which in turn allows McDonalds to maximise the sales and profits. The quality of the products of McDonalds is also based on the capabilities of the marketing strategy to identify and understand the needs of the customers in the market. This allows McDonalds to maintain its brand image in the market (Schwartzm, 2013).
1.2 assess the impact of the marketing environment on the industry
This section talks about the impact of the marketing environment on the operations of McDonalds in the market and its business model.
PEST analysis
The PEST analysis of McDonalds allows us to identify, analyse and understand the various environmental factors affecting the business of the organisation.
Political factors
There are a number of laws and regulations established by the government and other regulatory bodies in the countries in which McDonalds is operating across the globe. Some of the regulations and laws followed by the management of the organisation are the health and safety act, employee equality act etc. All of these regulations affect the business operations of the organisation in a number of ways (Paul, 2014).
Economic
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The economic condition of the countries of McDonalds’ operation is the basis of the various marketing operations to maximise the sales and profits of the organisation. The investment of the financial resources from the environment of the operating countries allows the organisation to strengthen its brand image.
Social factors
The business operations of McDonalds are affected by various social customs and beliefs in the countries of operation. The individuals in the societies across the world have different belief systems and values associated with their daily lives. This affects the operations of McDonalds.
Technological factors
The technological factors are associated with the various technological advances in the country of operation of McDonalds, which in turn affects the business operations of McDonalds in terms of the usage of various technologies in the business model.
SWOT analysis
The SWOT analysis of McDonalds allows us to identify and understand the strengths, weaknesses, opportunities and threats to the business operations of McDonalds.
Strengths
• Strong brand image across the
In the movie McDonalds changes the market from lounging teenagers to families. Ray Kroc sees an opportunity to franchise the business, although they had tried franchising before and failed Ray Kroc convinced them to try again and he will be their franchising manager, the McDonalds brothers agreed and entered a contract with him to be their head of franchising, a move that pays off but not for everyone. Although McDonalds have shown that they are able to expand, one of the challenges they face in other countries is that their sales are weak, for example in Japan McDonalds are facing strong competition from Mos Burger. Another challenge McDonalds is facing is replacing humans with machinery.
McDonald’s Corporation has held a prominent position in the fast-food market for much of its existence. A person would be hard pressed to find consumers who would not readily recognize the famous golden arches, as the company has expanded its market globally. However, as global consumer tastes shift to a more heath-conscious public which cares less about “super sizing” and more about “slenderizing” the popular burger chain has been experiencing a drop in sales. McDonald’s strategy for its globalization plan has included the concept of localizing their product (to a degree) for an international market; for example, local managers in British versions of the restaurant are able to make their own decisions that pertain to adapting to the current market. A difficult challenge for the corporation’s marketing team is how to reposition this wildly successful brand in a stagnant British market.
McDonald’s, a franchise known world-wide started out as a little burger stand in San Bernardino, California. It was started by brothers Mac and Dick McDonald, and Ray Kroc visited their restaurant in 1954. A year later he founded the McDonald’s Corporation, which was based on the successful burger stand run by the McDonald brothers. Three years after the McDonald’s franchise was founded, it had sold its 100 millionth hamburger. What factors led to McDonalds’ national and international success during the 1970s? McDonalds' national and international success in the 1970s was caused by its menu options, the cleanliness, and its spread around the world.
• Choosing the socio-cultural and global segments of the general environment and explaining which segment would rank highest in the influence on McDonald’s Corporation and also assessing how those segments affect McDonald’s Corporation.
With the help of 68 million customers around the world, McDonald’s has become a top ten company in the world with billions of dollars coming in. The story of McDonald’s started within the minds of Richard and Maurice McDonald in San Bernardino, California on May 15, 1940. The two brothers came up with the idea of the fast food chain with the observation from their father who was an owner of his own restaurant called “The Airdome.” Later, the brothers were given the idea to add the thought of a corporation with the help of Ray Kroc, seller of the milkshake machine that has been used at McDonald’s. Ray Kroc turned a locally branch fast food restaurant into what it is today. Today, McDonald’s is a company that is highly respected because of how
"The Marketing Process A McDonald's Restaurants Case Study." Business Case Studies. N.p., n.d. Web. 21 Apr. 2014.
In order to understand McDonald's structure and culture and why they continue to be the world's largest restaurant chain we conducted a SWOT analysis that allowed us to consider every dimension involved in the business level and corporate level strategies.
The McDonald’s Corporation case study take a comprehensive look into the competitive market of the fast food industry. Particularly, McDonald’s and some of it greatest fast food competitors. In this analysis I will be revealing the marketing strategies of McDonald’s and other fast food companies. Identifying the trending tastes of consumers in this market, tactics used by McDonald’s competitors such as Wendy’s and Burger King to one up the marketing strategies of McDonald’s. I’ll also be assessing the strength, weaknesses, opportunities and threats of McDonald’s in this market segment. Evaluating the consumer purchase decision process and purchase type in the food industry. Lastly, I’ll explore which growth strategies I believe would make the
McDonald’s has proven over time that the business practices they utilize work well and have led them to obtaining the title of the largest food retailer in the world. The founder of the company made a tactical decision in franchising the idea of providing fast food at a cheap price. Today, fast food has become a staple of not only American life but a viable food option all over the world. For McDonald’s a critical factor in them reaching the level of growth they currently experience has been franchising. It can be assured that McDonald’s will continue to grow through the usage of the franchising techniques as new food markets continue to develop all over the world.
McDonald's current customer environment is people on the go or people who don't want to spend a lot while going out and need something quick and good to eat. It is best stated in McDonald's mission statement that they want to be the world's best quick service restaurant experience. As stated before, McDonald's has restaurants in 121 countries and has extensive global experience in customer service and satisfaction. McDonald's is excellent at researching an international area before building restaurant there. For example, in India McDonald's realized that the majority of the population was Hindu and vegetarian, they therefore, did not even bother to put beef or any other red meat on the menu.
McDonalds believe that good customer service is the responsibility of everybody in the company. Every employee has a part to play in providing with a service with best practise found anywhere in the trade.
Marketing at McDonald's n.d., McDonald's Corporation, accessed 23 August 2011, http://www.mcdonalds.co.uk/static/pdf/aboutus/education/mcd_marketing.pdf>.
In today’s market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry.
Much like a smile, the “Golden Arches” can be understood in any language. The McDonalds brand is the most well-known, internationally embraced fast food empire. McDonalds operates over 31,000 franchises throughout the world, with the United States leading the way with a whopping 13,381outlets as of May 2009 [1]. McDonalds has the fast food market cornered, offering an increasing variety of food of beverages, marketed to people of all ages to eat at any time of the day. However, being a corporate giant has its issues. McDonalds has faced a lot of criticism for its high-fat, high-sugar, potentially addictive menu. While the corporation is not likely to outright admit responsible for its actions, McDonalds has seen some changes to address some of the issues. Despite the flaws in the public elements of the brand, McDonalds has established an almost recession-proof economic base [2].
Vignali, C. (2001). McDonald’s: “think global, act local”--the marketing mix. British Food Journal, 103(2), pp.97--111.