Assignment On Managing Markets Company Name Mcdonalds Marketing Essay

Published Date: 23 Mar 2015

EXECUTIVE SUMMARY:

Mcdonald's. This report mainly focuses only one part- the macro environment. In this part converse the macro environmental factors impacting upon Mcdonald's introduction emphasis on the key drivers and evaluate the current strategies in use PESTEL analysis and the marketing mix of the company. Mcdonald's is a largest global fast food company in the world. It is running most of the countries in the world. For this Mcdonald's has to face so many challenges and issues in the business. Mcdonald's have close relation with macro environmental factors. Company think about the political, economical, social, technological, environmental and legal aspect to make its business policy and another main thing the marketing mix.

INTRODUCTION:

Mcdonald's is the famous fast food restaurant all over the world. It is established in 1947 in USA and day by day their business spread Europe, Africa, Asia and throughout the worldwide. Mcdonald's had approximately 31107 stores and served approximately 5.5 million people everyday in 120 countries at the end of 2009.Mcdonald's employee approximately 475000 and at the end of 2009 the market value of the company was $55216 millions, assets $30123 millions, profit $4313 millions, revenue $23522 millions, and plans investment $2.1 billion. Mcdonald's aim is to become the best and the quickest serving restaurant in the world, and so they are going to focus the efforts on the selection of menu, information of consumer and manual information as the customers are the key to business. The company is in challenging position. It is upgrading the food quality and the standard of the customer service. The company is also very conscious in health and safety. The company is now a unique example of globalization. It has given and is trying to give all the modern quality facilities to the employees to encourage them to increase the standard of customer service.

PESTEL ANALYSIS ON MCDONALD'S:

The macro environmental factors through which Mcdonald's run its business can be

Terms:

Political factor

Economical factor

Social factor

Technological factor

Environmental factor and

Legal factor

Political factors: The foreign and domestic markets of Mcdonald's are influenced by many kind regulations of the Government, administrative decisions, illegal sharing of life, internet problems, same category of constraints and laws. Company crates much pollution like water, air and land. Mcdonald's give the commitment to the environment; they will solve this type of problem. They will make standard environment, labour work hygienic, and healthy conditions factories. Time to time the political Government changes and as a result their new rules and regulations affect and motivate the existing business in the country. War and political conflict create unfavourable business to each other counties. So, the companies want to ensure their security and proper power supply to run their business. The growing people all over the world especially in Europe and America are becoming more and more health conscious and as a result being influenced the Governments of the countries change rules and regulation for good maintenance especially fast food in the companies like Mcdonald's. So, Mcdonald's is always trying to keep up the standard of health and safety for goods being served.

Economical factors: Economical factors are very vital for consumer market. There affect the customers purchasing capacity. The factors mentioned below are prominent in macroeconomics-

Growth of economy

Rates of interest

Rates of exchange

Rates of inflation

Besides these there are some other issues associated with the factor of economy are general taxation issues, weather factors, the rate of exchange and interest, monetary issues and global trades, the factors of particular mills and industry, overseas trends of economy and particular service or product related taxation. The economic risk in every country is met by own economic and financial ability and intention. If the country face economy recession than thousands of people lose their jobs. In the recession period business will be slow down and purchasing power also will be less. The recession is such a kind of risk which has a great impact on fast food business. As a market leader Mcdonald's has taken the situation with a challenge and has become successful much more than other fast food companies. For the last 12 months economical factors has played an important role in decisions making. Customers purchasing power depend on their in level, savings, price of products etc. If company overcome the various problems so they have to take some steps like apply the better management, improve the better performance, operational and overhead cost will be minimize, minimize the margin, expanding the market area and set up a target market customers, increase a brand image.

Social factors: Social factors have a great influence on marketing policies. The demographic and cultural aspects are included in the social factors of the macro environment. The main social factors which affect the customer meads are-

Public consciousness about health

The rate of population growth

Age classes

Emphasis on safety

The attitudes of career

Besides these there are some other affecting factors like media views, lifestyle, customer attitudes and opinions, religious and ethnic trends, social customs and superstition, foreign social culture coverage by Medias and so on. Consumer's attitude and opinion create social impact. Media is a most important for business reputation. Consumers take decide on the basis of media which product is good or which one is bad and what they will buy. Deferent countries life styles are deferent trends. Product designee, quality is depending on the life style. Mcdonald's is considering all these factors to cope up with the customer demand as Mcdonald's reputation is based on trust and dependability.

Technological factors: Today is the age of technology. So, technology is playing a vital role in customer service. At present millions of customers are buying different products from online market. So, Mcdonald's online market is planning to attract more and more customers into its more than 1235 UK fast food restaurants. Some of the factors of technology included the following-

Automation

Research and development activity

The rate of technological changes

Technology incentives

To meet the customers demand the company is introducing various types of fast food products. At present time companies facing so many competitions among themselves due to technological invention. Mcdonald's has improved information technology and efficient operating in order to compete with customers. Mcdonald's is now playing to take order via internet to meet their demands at home. The company is planning to do this so that the customers can buy anything they want buy just clicking a few buttons on the computer. Most other companies are selling their products online and so there is an increasing internet market competition. As a result Mcdonald's has no other way .So, the company has to use new technology to meet the customers demand.

Environmental factors: The climate and weather change are contained environmental factors. Change of temperature may force of plenty of fast food like that farming. By the alteration of climate because global warming and through better environmental awareness this outside factor is becoming important issue for firms to consider. The rising ambition to keep the environment is having a drive on lot of fast food Company like the travel and Transportations Company and the broad transfer close to more approachable products and process is moving the demand patterns and creates the business opportunities.

Legal factors: Legal influences are connected with lawful environment where firms run. We see that in the recent years in UK the laws are being changed and these are dominating the firm's activities. So, Mcdonald's is coping up with the matter. The age discrimination unfair legislation of disability raising of the minimum payment rate the recent laws influence on the organisation's performance. So, Mcdonald's may concern the food's costs and is careful about the legal requirements.

Macro environment has influenced Mcdonald's decision making, for the last 12 months:

Last 12 months all over the world faced the economy recession. Many countries like UK, USA, Ireland and other development countries faced the financial problems. Lots of fast food restaurant were closed. When face the economy recession that time customers buy cheap products rather than costly ones. Mcdonald's influenced by the macro environment situation. Major marketing decision making that is influenced by the macro environment. An economic condition has change that time customers want to get low price products but good quality. For the competitive advantage Mcdonald's needed to take effective strategic decision. Company last 12 months took the marketing decision about the product, half price; buy one get one free, low price etc.

The influence of macro environment for future decision making:

Those who are competitors like kfc, burger king, dominious pizza they are also realized the significant of low cost products, they also started sell the low price products. So at the present time competition is stronger. Mcdonald's future decisions making will be very vital for the competitive advantage. Future decision making influenced by the macro environment these are, political rules and regulation change, tax rate change, increase of minimum salary, and labour rules. If the current economic recession goes down or it progress sharply so it must be influence the future decision making. Technological improvement like new machine development, improving the customer service. Mcdonald's can create future decision making.

Conclusion: Mcdonald's is following the code of conduct in its business. It is on the right steps so that it does not face any problem. So, Mcdonald,s needs to find out the way to produce low cost high quality products to compete the other fast food companies though it has already been successful.

PART-B

MARKETING MIX ON MCDONALD'S

Marketing Tactics:

It can be explained as a process, which is used to achieve put targets marketing plan.

These are performance occupied by company to put up for sale their product.It frequently deals with psychological aspects to create customers reflect of buying item for consumption. By collecting information of various customers, their views, a high-quality managed plan with ultimate results can be awake.

For existing and new customers Mcdonald's has to make customer analysis of same purchase power and trends.

Those who are customers they are always try to save something, but some of the customers, they want to get good quality products.

Buying activities have to be making various ways like physical, on line system, customer attention and door to door delivery etc.

What type of product customers want to get?

Mcdonald's has to be finding out which level of price customer wants to pay easily.

Company have to collect the information about the customers from the market, which type of TV programme, Newspaper and advertisement customers frequently view.

Therefore, Mcdonald's think about the energetic aspects of social atmosphere, buying activities of customers. Mcdonald's always research the market and find out the information about the competition market, technology development, new product development etc.

Tactics for Mcdonald's marketing deal can be best explain in 7P's like

Product

Price

Place

Promotion

People

Process confirmation

Physical evidence

Product: When Mcdonald's delivery the product in the market that time they are maintenance quality, feature, packaging, services and guarantees. They are following the some product strategy by considering the factors:

Who will use this product?

Mcdonald's targeted all over the people to sell their products through the present demand.

Mcdonald's always take little benefit of the product than the competitors. All types of customer can buy their products because its price is reasonable from the other fast food restaurant and product quality also attractive. For the customer Mcdonald's frequently introduce the new product in the market and passed the old one. In this case company believe that introducing the new product it will be create introduction, growth and than the maturity and than the decline. Maturity stage is the best position of the product. When company reach their maturity stage that time they earn lot of money. So, Mcdonald's always take care for the lengthy duration to maturity stage.

Price: Price is the most important elements of the marketing mix. Because in the market have so many fast food restaurants. When customers buy products that time they are identify the price from others restaurant. That's why Mcdonald's always make good quality products but price is reasonable. Mcdonald's cost structure is very strong, for this they can offer products the low prices. Mcdonald's all the time follow value based approach on the other fast food restaurants follows competitor pricing approach considering the quality and taste of food. Appropriate pricing, it is one type of promotional techniques to maintain and achieve the competitive advantage especially its competitors do not have the ability to offer clear pricing hierarchy. Mcdonald's is always ahead because they are offering low price. When they offer low price that time their sale is increase and profit also increase.

Place: Place is the most important for every company. Placing mention that how company will distribute the products for customer. Place should be good location because they can easily distribute their products to the customers at the right time to right place. Place also most important thing for the entire organisation. Mcdonald's has established a strong market position through what type of thing customers need and wants. Mcdonald's make market internationally with the customers. If they can not select the right place so the organisation can not progress sharply. At this situation Mcdonald's always select good position that's why customers easily can get products. Mcdonald's follow the some distribution strategy like locations, distribution channel, team members, transportation system, and inventory etc.

Promotion: At the present time promotion strategy is the most important for all types of organisation. Any organisation can not progress without profit. Promotional strategies of Mcdonald's are sales promotions, when they offering the products at half price and if you buy one than you will get one free etc, than sales are increase. Rest of the promotional strategies are public relation, advertising, personal selling and good communication. By the advertising products are introduce in the market. When company advertise the products by the various media like TV, Newspaper, radio, online, magazine, billboards, sponsorship etc, that time customer can easily target the product, which one is good or bad. Another most important point is good communication. By good communication with the customers, promotion day by day is increasing. Public relation also most important for the sales promotion.

People: Mcdonald's do the direct business with the customers. So, this type of business has needed more people. For the achieving targets markets, Mcdonald's direct trained up people for customer service, packaging staff, delivery staff, and the follow up staff. Companies need efficient staffs for this company take well training. Mcdonald's always follow up staffs; and give briefing how will motivate the customers and how they will communicate with the customers. Efficient staff can easily motivate the customers.

Process Confirmation: Process confirmation also most important for every organisation. Process confirmation will be run for making company well known in the people. It is involve on marketing online, print media etc. If the process is necessary products review has to be analyse and modify the plan. For every product packaging will be offered in attractive and colourful to attract more customers to the product.

Physical Evidence:

Mcdonald's always investment large amount for the high quality selling environment. The service department should be always welcoming and clean. Those things are documentation that will be complete and professional. Physical evidence has to be judge on- response of sales, analysis of market share, and

Customer's feedback. Analysis of market share is a most important for every organisation. By the analysis of market company can know what the position in the market level is.

Competitive Advantages Of Mcdonald's:

Every company try to find competitive advantage. This is the force that holds their company above others in their industry and gives them power to stay in the business. Brand recognition is a most important for a company because when customers buy the products they are follow the brand. Mcdonald's is a one type of example of the company with competitive advantage. Mconald's brand is known globally, their doing fast food business longer than the huge popular of their competitors. Mcdonald's is a running company because they have vastly advertising and they are reliable. Mcdonald's fast food is a leader of the other fast food industry because they are creates healthier lines fast food such as salads and wraps to appeal to the changing tastes of consumers. They are recently preparing new premium coffee that is taking from Starbucks because it is cheaper. Every consumer knows and trusts that Mconald's is a powerful fast food company because they have power to change as tastes change. This keeps their competitive advantage alive.

Conclusion:

So, Mcdonald's marketing mix is successful. Their decision makers create successful marketing mix. With out successfully marketing mix and strategies, their sales are medium. When company open a new branches in the different countries that time their price is low, good quality, attractive product for the young generation. Mcdonald's has become a good fast food brand all over the world. Mcdonald's fast food should be more careful and get the success. The important key factor is future success, this success depends up on several marketing research. Mcdonald's marketing research is healthy and polite environment. They are recently prepare new premium coffee