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Merits of Marketing: McDonalds

University: Kensington College of Business

  • Unit No: 8
  • Level: Undergraduate/College
  • Pages: 15 / Words 3717
  • Paper Type: Assignment
  • Course Code: JNB523
  • Downloads: 685
Question :

Marketing is process of promoting and communicating the offering to the people in order to enhance the sales. The company for this project is McDonalds which is a leading fast food company at global level. A Chief marketing manager is being appointed in the firm to evaluate the implementation of the market opportunity in order to launch the brand extension in a country for new product.

  • Merits of concept of marketing in business situations.
  • Potential impact of external factors on activities of marketing.
  • Major decisions which confront in satisfaction of market needs.
Answer :
Organization Selected : McDonalds


Marketing is a set of institution, process for communicating as well as exchanging values for customers to satisfy their needs and wants. Mainly, it is associated with selling, buying, selling products and services to end consumers with the purpose of attaining their satisfaction level. The main purpose of using marketing is to create values for customers in order to increase their base within the organization (Hayes, 2018). With the help of this company can easily attain competitive advantage at market place. Along with this, it include various activities such as advertising, selling, distribution and many more. All these are contribute in attaining customers attention towards company products and services. Present report is based on McDonald's, is popular and successful fast food restaurant chain in over the world. Company has more than 1270 restaurant in UK and also employs approx 120000 workers who work for the company to serve high quality food products to its customers. Report also cover marketing philosophies and concept which may help in delivering values to its customers. Along with this, evaluation of dynamics and trends within the marketing is also mentioned in this assignment. At last, project also includes marketing planning process to build a sustainable brand in market place.

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Part 1

Marketing is one of the important concept for every business organization because it help in increasing customers awareness towards company products and services. With the help of marketing, firm can easily connect with their customers and evaluate their requirements. By this company can easily provide quality services to its consumers and also attain their satisfaction as well. In context of this, McDonald's is one of the famous and successful fast food restaurant which provide tasty and delicious food to large number of customers. Company image in market place is competitive as, firm easily expand their operational activities in another areas and attain success. The main reason behind this is its loyal and strong customer. This will contribute in improving brand image of the firm at market place and at the same time also increase their market share.

For attaining success, it is important for business organization to having proper knowledge about market and trends as well (Heinonen, Strandvik and Voima, 2013). This will contribute in evaluating the current position of the firm at market place. In this context, various marketing philosophies and concepts are there which may help in increasing the ways to established competitive brand image of the company. Mainly, marketing is the concept of understanding the customers needs and wants and also provide quality services as per their requirements (Golicic and Smith, 2013). As per current scenario, every business organization take care of their customers and tries to maintain long term relation with them for improving strong customers base. With the help of this, company can easily retain customers for longer period of time. In market, McDonald's having their strong position because company deliver quality and fresh food products to its customers as per their needs and demands.

Apart from this, McDonald's use marketing philosophies and concept with the purpose of attaining higher success at market place. For this, firm deliver values and quality products in over the world (Hair And et. al., 2012). This will increase overall profitability of the firm at market as compare to its rivals. As there are some main concept of marketing which follow by Mcdonald's are as follows:

  • Production concept: It refer to availability and affordability of products. If both elements are highly present in market then company will attain success. In this context, the main aim of McDonald's is to reduce cost of products and at the same time focus in their distribution. With the help of this company  increase their profitability level. If company offer low price products then customers get attracted and also increase sales.
  • Product concept: This concept refer quality of production rather than quantity of production. Thus, McDonald's needs to focus on their products and also improve as per continuous basis. This is because customers attract towards high quality products and also willing to pay high price. As McDonald's follow this concept to maximize the chances of improving the existing products quality. For example, McDonald's provide healthy and organic food to its customers at affordable cost. This will help in increasing the demand  of the customers towards its products and services.
  • Sales concept: It is one of the important concept which help in inviting as well as attracting large number of customers in front of its products. In this context, McDonald's focus on aggressive selling techniques like personal selling, sales promotion, personal selling, advertising and many more (George, McGahan and Prabhu, 2012). All these are directly contribute in attaining customers satisfaction. In addition of this, the main aim of selling process is to convert final goods into cash in effective manner. This will contribute in attaining higher profitability level at market place.
  • Marketing concept:  As per this concept, the main consideration of company is to provide satisfaction to its customers. For this McDonald's serve quality fast food services to its target customers like children, young youth, health conscious customers (Baker,   2014). Through which firm can easily maximize profitability level and attain success as well. For attaining the same, company needs to determine the customers needs and wants towards its food items.
  • The social marketing concept:  The main aim of this concept is that, company needs to make effective marketing strategy to deliver value to customers. With the help of this company can maintain better relation with their consumers. In context of McDonald's, they focus on human welfare on top priority before profits (Hollenbeck, Noe and Gerhart, 2018). Thus, company should offer tasty burgers with low fats is understand about the customers in order to improve well being of society.

Apart from this, it is also important for company to use appropriate strategy to deliver values to its customers as per current trends and customers taste as well. This will increase the chances of attaining competitive advantage from its rivals.

Ansoff matrix: It is an important tool which allow marketer to evaluate the ways to grow the business in market place. With the help of this McDonald's can improve their market and product position. As it includes four strategies are as follows:

  • Market Penetration: It is one of the main strategy which refer ton existing products and existing market. As it consider as a best way through which company can easily attain competitive customers and at the same time also enhance market share as well. IN context of this, McDonald's highly pay high for promoting their products and services with the purpose of attaining customers attention towards its products and services. As company advertisement channels are high due to this McDonald can easily increase their strong customers base (Bratton and Gold, 2017).
  • Product Development: This type of strategy refer to new products in existing market. In this context, company develop other products in same market with the purpose of attaining higher growth as compare to its rivals. For example, McDonald's is famous fast food restaurant as they introduce new burgers such as organic burgers. In this, firm invite new and potential customers towards its new product. This will help in attaining competitive advantage at market place.
  • Market Development: Under this, McDonald's offer their existing products such as Mc puff, hamburger and many more in new market. In which company target Children, and young generation who likes to eat fast food items (The Ansoff Matrix, 2017). As a famous brand, McDonald's add values within their existing products to invite larger number of customers and at the same time also increase their strong customers base.
  • Diversification: It refer to new market and new product. In this McDonald's introduce new product in new market with the purpose of attaining growth at market place. For example, McDonald's introduce new organic burger for health conscious customers. This will help in increasing the demand of the customers towards its new products and services. 

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Part 2

Marketing environment affects and surrounds on an organisation. Different environment related forces impact on marketing activities of company. Some forces are external to company and not controllable through firm and on the other hand some are with in an organisation and controllable through management. The customers demands and preferences are changing with in short period of time. So, it is a responsibility of an organisation to focus on demand and preferences of consumers on reasonable cost. Individuals trends to spend the minimum but more careful about spending money (Holliman and Rowley, 2014). The income level of every person is different from the each other so every one can not afford the high cost products and services. Successful marketing needs that firm  develop as well as execute the marketing programs which take in to an account its an environment. For organisations, it is necessary to understand the environment, in context to McDonald, it is global icon in market of fast food which expand its operations and activities in all over the world. It is a popular firm at market place and before conduct market in other countries, this organisation analyse the market. 

Under this, it is necessary that firm should follow the current market trends so that large number of consumers can be attracted towards company and enhance development along with profit level with in given period of time (Armstrong and Taylor, 2014). In context to dynamic environment, successful marketing campaign enhance profit level of firm and also helpful in reach to achieve the strategic objectives. There are many challenges to the marketing because business environment changing constantly. Attitudes as well as preferences keep evolving and also need managers to adopt them rapidly. It is complex for organisation to reach at the various target markets with the culturally relevant and accurate propositions.

 At the time of launching new product at market place, there are many different challenges faced through company but other than these firm can increase its market share. The SWOT analysis revels about making the food chain of McDonald more successful by using the competitive benefits to continue dominating the fast food sector. With the help of SWOT analysis, firm can know about its situation at market place (McDonald's: Strengths, Weaknesses, Opportunities, Threats, 2018). It is helpful in provide competitive benefit to an organisation. SWOT analysis is helpful in determine strengths, weaknesses, opportunities and threats which impact organisation most. It is mainly used to develop strategies, goals and also execute practices. It is helpful in decision making through out an organisation and develop standards description of firm. In brand extension, company uses its current brand name in context to introduce new product. SWOT analysis of McDonald mention below:


  • This organisation rolled out successfully new products such as smoothies, Angus burgers and coffees to expand range of menu selection.
  • The operation of this company is spread in all over the world and it is second largest fast food restaurant that serve consumers in more than 120 countries.


  • For develop golden arches, it will difficult to search the prime location for McDonald.
  • The image of this organisation is not good and people think that it provides unhealthy food products.
  • People of this present time are health conscious and they do not prefer the fast food and it develops bad impact on sales and profit of company (Knights and Willmott, 2016).


  • There is an opportunity to McDonald company can produce the organic food items because people want to eat healthy food which can not affect on their health in negative manner (Kuratko, 2016).
  • It should research about green packaging as well as energies solution as part of its advertisement as well as marketing strategies.
  • It can produce goods to allergen the free options like for an instance gluten and peanut free foods.
  • McDonald firm can do partnership with the other brands and make some innovation in its existing menu in order to attract the large number of consumers towards firm.


  • In the fast food industry, there are several brands enter which create more competition at market place. In context to this, competition is more high in this industry.
  • Revenue of company is diversified but based on length of recession. It negatively affect on business of McDonald organisation (Osborne, Radnor and Nasi, 2013).
  • In this modern era people are more conscious about their health and they do not prefer fast food products more. So, it is a main threat for company.

Visit this sample: Business Operations of Aldi

For new brand extension, McDonald organisation prepare a systematic proposal for the purpose of introduce the new product at market place. In proposal there are different steps included which are given below:

Background of firm- McDonald is fast food restaurant and operate its business in more than 100 countries and has around 36900 outlets. The headquarter of this company is in California,United States. In terms of revenue, it is one of the largest restaurant in world. It provides chicken products, soft drinks, desserts, cheese burgers, breakfast items and also French fries. This firm continuously make changes in its menu and food items on the basis of demands and needs of customers.

Objectives- McDonald objective is to offer better quality and high standard food products to consumers at reasonable cost.

Vision- The vision of this organisation is to expand its business in high growth rate market, so that McDonald can target new market.

Mission- Its main focus on provide better experience to people so that they can loyal towards firm for long period of time.

New product- The new food item which McDonald organisation going to launch is Organic burger with healthy coke which can not affect the health of people (Palmer,  2012).

Target market- The target market of McDonald company is Health conscious people.

Challenges- At the time of launch new product, there are many different challenges faced through firm related with cost and time. In advertisement of new product, there will be requirement of more money, so it is necessary for finance department of company to arrange funds according to the marketing activities.

Suggestion- From the above given discussion, it has been suggested that organisation should analyse the current market trends as well as existing demands and wants of consumers. It will be helpful in develop the negative impact on business in an effective manner.

Part 3

Marketing planning process is an appropriate approach through which company develop marketing goals and objectives to attain success at market place. For example when the company launch a new products in market place than they have to focus on it strategic components (Ariss, Cascio and Paauwe, 2014). With the help of this, firm can easily evaluate the market trends and customers taste as well. In context of McDonald's, they also should implement as well as market research to understand the customers needs towards the products and services. It provide support to build a sustainable brand in market place and at the same time also enhance overall market share.

As per real life case study, RMS develop various new products concepts. Before launching new products, company evaluate the awareness of the products in market place, understand shopping habits of target customers, measure their interest towards the new product concept of the company, take feedback from customers towards the features that are liked by the customers in order to evaluate the features that needs to improvement. All these are major concern for the company to implement at the time of launching its new products so that they can easily established their positive brand image. In addition of this, RMS also conduct online survey  in which they covered various topics like  shopping habits, current product awareness, interest of new products. Survey results allowed the RMS to understand the customers and segments (Stewart and Shamdasani, 2014).

Thus, McDonald's needs to apply same case within their activities before launching its new products like Organic burger. As company should identify the customers taste and preferences in order to understand the product demand in the market place. It provide guidance to McDonald's, that what are the views and opinion of customers about the company new product.  With the help of this, company easily determine their target market and launch its products.

In addition of this, McDonald's should conduct survey in which they cover various elements such customers taste, demand, target customers, response towards the organic burger with healthy coke, determine competitive price point and many more (Teece, 2014). All these are help McDonald's to evaluate the response of the customers about its new products. Along with this, McDonald's needs to implement the challenging that are occur at the time of launching a new product for sustainable the brand in mar

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