Mcdonald Restaurant In Uk Market

Published Date: 02 Nov 2017

McDonald’s was originated in 1954 in California, USA. It has become one of the most familiar and esteemed brands in the world.

1.1 STRATEGIC MARKETTING

Marketing includes all the actions or business of promoting and selling products or services, including market research and advertising. Strategic Marketing is a more structured approach.

1.2 STRATEGIC MARKETTING IN MCDONALD RESTAURANT

In order to stay on top and offer what customers want, McDonald's always keep the strategic nature of its marketing.

1.2.1 Product Strategies

McDonald not only modernizes the fast food industry but also positioned itself as the leader of the market with not expensive and quality food.

The secret of McDonald's success is the readiness to innovate. As for an example, the breakfast menu, salads, Chicken McNuggets etc are all examples of how the corporation tried to appeal to a broad variety of consumers.

Apart of the flavors that created in the USA, McDonald's international restaurants have been in compliance to regional tastes too.

1.2.2 Placement Strategies

The prime focus of McDonald is on store placement. It always keeps looking for the best locations. Another focus for the company is convenience, serving the customers fast in the location of its outlets.

The real opportunity for growth of the company lies abroad as competition is not cutthroat there.

1.2.3 Pricing Strategies

The basic strategy that McDonald's follow is to offer quality food to the customers not only quickly but also at a good value. The pricing structure for McDonald's over years has supported this message. The company strives to distinguish itself from other fast food restaurants by offering a variety of menu items that appeal to a variety of people from those who just want great hamburgers, to those who just want a quick healthy meal. McDonald's differentiates itself by offering a dollar menu, combination meals, and a free toy with Happy Meals.

1.2.4 Promotion Strategies

McDonald's has rationalized their advertisements and website to include nutritional and dietary information.

"Have you had your break today?" is the phrase put together by the marketing executives. Then the idea was developed to "You deserve a break today". Now the "I'm Lovin' It!" is the phrase.

LO1.2 How would you explain the processes of developing strategic marketing for McDonald Restaurant

McDonald’s is one of the universal best known brands. Identifying today’s customer requirements and fulfilling these needs in a way better than the rest of the competitors is the thing marketing is all about. In this way a company creates loyal customers. The initial task is to find out the potential customers. We can also address them as key audiences.

1.2.1 Market research and Marketing mix

Exact research is necessary to create the correct marketing mix. Buying decisions of the consumers can sometimes be affected by factors like Psychological factors. McDonald’s establishes an important place in the minds of customers through its marketing strategies which can also be termed as branding.

The four main marketing tools – the 4Ps are used to define the marketing mix. These are:

-Product

-Price

-Promotion

-Place

1.2.2 Meeting the needs of key audiences

Customers identified my market research are of following types:

Children, who come to McDonalds as it offers toys and the joyful environment.

Parents with children, who visits usually to McDonald for giving treats to their children.

Business Men, Only can manage having a bite in quick manner.

Teenagers, usually enjoy the Saver Menu which if reasonably priced.

In order to create a marketing strategy that will enable the needs of the key market to be met, the strengths and weaknesses of the organisation must first be identified and analysed.

1.2.3 Marketing Objectives

It is about what marketers want to attain and are used to measure how fine a plan is functioning. They can be associated to market share, reaching, sales and the target audience. Results can be analysed recurrently to see if objectives are being met or not.

The 4Ps

Now the marketing mix is put together.

i. Product

Market research establishes accurately what is to be done and helps to place extensive emphasis on developing a menu that consumers would like. As the customer’s requirements change over time, Marketing constantly monitors their preferences.

ii. Price

An important determinant of the price charged is the consumer’s observation of worth. Any product has psychological connotations for the customers. The danger of using low charge as a marketing tool may leave the customer to feel that a low price may be an indicative of inferior quality.

iii. Promotions

Advertising is used for promotions which can be conducted on TV, radio online etc. Some more promotional methods include sales promotions, direct mail, merchandising etc.

iv. Place

It’s not only a physical location but it encompasses the management of a spectrum of processes involved in bringing the finished products to the end customer.

LO1.3 Assess what could be strategic marketing plan for McDonald Restaurant and its

corporate strategy

A McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself

The company sells hamburgers, cheeseburgers, breakfast items, shakes, chicken products, soft drinks and desserts. McDonald’s has also changed the menu to include healthier alternatives like salad etc.

Strategically company’s main focus is to satisfy its customers by providing them the best of their service. While from organisational point of view expansion is the main focus out of the McDonalds as expanding its outlets throughout different countries of the world.

There are many strategies that McDonalds can pursue for achieving success in the business:

Stay-on-the-offensive strategy which focuses on fetching market leadership. The company which follows this strategy usually tries to bring in changes in the business and products to keep itself ahead of rest of the competitors in the market.

Fortify-and-defend strategy strategy is all about giving a rigid opposition and making it tough for the rest of the competitors to achieve success and new companies to enter into the market. McDonald should continue to open new restaurants globally. They should also spend money to develop novel and better technologies.

Global strategy which the company already follows. McDonald is, as everyone can see, a strong player in the fast food industry worldwide. It has an obvious global presence. McDonald should go on to expand its. As they provide inexpensive and quality food, People can easily afford it and thus they can easily target low economic areas.

Diversification is already being followed by the company and it should carry on following it.

CORPORATE STRATEGY

The success McDonald’s achieved includes that the company has established above 30,000 franchising stores in almost 119 countries, serving above 47 million people every day, and generating about $15 billion revenues yearly.

McDonald’s also continuously enhance its brand by indulging in different social activities and the sponsorship of extraordinary events, for example it is a major sponsor of the world cup since 1994 McDonald’s business structure influences its strategy. The McDonald’s business structure is based upon a geographic structure.

LO2: Understand the tools used to develop a strategic marketing strategy

LO2.1Identify various tools that could be used in strategic marketing planning for McDonald Restaurant and comment on its benefit to McDonald Restaurant

STRATEGIC MARKET PLANNING TOOLS:

Product: - McDonald’s has introduced new products and phased out the old products, and probably will continue to do so. Care must be taken not to harmfully affect the sales of one choice by introducing a new choice, which may cannibalise sales.

The company places important stress on developing a menu that clients want. Market research establishes this.

Price: - Customers usually draw their own psychological picture of what a product is value as a product is more than a physical item. It also has psychological connotations for the purchaser

Promotion: - The promotions portion of the marketing mix covers various types of marketing communications. Advertising is one of the methods employed that can be conducted on TV, radio, in cinemas, using poster sites, online and in the press that may include in newspapers and magazines. Rest of the promotional methodologies include the sales promotions, direct mail, loyalty schemes, point of sale display, merchandising etc. The dexterity in marketing communications is to develop a campaign that may use various of these methods in a way that provides the most successful results.

Place: - Drive in and drive through options make McDonald’s products further convenient to the consumers. Place is also an element of the marketing mix and is not just about the physical location or distribution points for commodities. It encompasses the management of a range of activities involved in bringing products to the end purchaser.

People:-The employees in the company have a standard uniform and McDonalds specially focuses on welcoming and prompt service to its customers from their workers.

Process: - Customers are allowed to view and review the hygienic standards at McDonalds by allowing them to enter the area where the food is manufactured. The consumers are also invited to check the ingredients used in the manufactured food. Therefore the food manufacturing process at McDonalds is totally transparent.

Physical evidence: - The company focuses on clean and hygienic interiors and at the same time the interiors are eye-catching.

LO2.2 With EVIDENCE discuss the strategic positioning of McDonald Restaurant and explain what marketing tactics would you apply in Positioning McDonald Restaurant in UK Market

2.2.1 McDonald's Strategic Positioning

McDonald’s is one of the most flourishing companies on the planet, but it started out as a small business. Strategic Positioning is doing dissimilar actions than the competitors or doing the same activities in a different manner. This way the company becomes a better performer in the industry.

McDonald’s is a family friendly low price restaurant. In recent years due to lost sales they have started to make their menu a more healthy option. They are now mainly determined on cutting delivery time and the price of food. They have the modern and technologically advanced techniques to make the job even easier. They have also included playgrounds in many of its restaurants. The marketing schemes feature family friendly slogans like The term happy meal has become a house hold name.

2.2.2 McDonald Restaurant in UK Market

McDonald’s opened its first UK restaurant in Woolwich, south London. One of the most important reasons for McDonald’s success in UK has been brand consistency. McDonald's has introduced novel items in the menu and does campaigns to make more healthy foods including salads.

The firm also focuses more on increasing the sales at the existing restaurants as a replacement for of opening new ones. McDonald's has increased menu options, redesigned many of the restaurants and keep their stores open till late. The company continues to produce its new restaurants at a 1%-2% rate every year.

Correct research is necessary in creating the right marketing mix which helps in winning customer loyalty and increasing sales. As the economy and social attitudes varies, buying patterns also get influenced. By Doing SWOT analysis on McDonalds, following results were obtained:

1. Strength

Main strengths lies in the brand and thorough market research to create the correct marketing mix.

2. Weakness

It has become essential now to keep innovating as McDonald has been around for a long time.

3. Opportunities

It may include increasing the numbers of customers who are looking for food being served in a quick and friendly way.

4. Threats

Potential threats include new competitors, changing customer lifestyles etc

LO2.3 Investigate the relationship marketing of McDonald Restaurant as part of its strategic

marketing strategy

RELATIONSHIP MARKETTING

McDonalds use relationship marketing in a couple of ways, but don't expand it largely. McDonald's use their happy meal toys as relationship marketing as these cheap little toys entertain little ones and encourage them to bring their parents to the business.

Another way is when you buy six hot drinks you get the seventh free. For creating a trustful relationship with the customers, it’s important for the companies to identify customer’s uncertainty. The uncertainty about commodities or services are expected to diminish when consumers obtain more information from other channels such as print media, personal acquaintances etc.

Business Relationship Trust has become progressively more fascinating in the regulation of business relationships. Recently, rapidly varying competitive businesses have aroused a huge number of firms to become fascinated in building trust with their clients because the high levels of confidence between parties can diminish transaction costs and ambiguity of businesses relationships.

The previous research has not addressed using information-seeking strategies to lessen customer’s uncertainty and executing communication strategies to build trustful relationship with the consumers in the framework of quick service restaurant. The marketing relationship between the company and consumers can be understood through the communication strategies, Uncertainty Reduction Theory and the information seeking strategies. McDonald’s executes communication strategies to offer information and build trustful relationship with its consumers. McDonald’s customers use information seeking strategies to lessen their uncertainty regarding McDonald’s products or its services.

LO3 Be able to use strategic marketing techniques

LO3.1 Use Product Life Cycle to ascertain growth opportunities in the restaurant industry

3.1.1 PRODUCT LIFE CYCLE-

GOAL

The main goals of Product life cycle management are to improve product quality, lessen time to market, reduce prototyping cost, and identify possible sales opportunities and revenue contributions. In order to create successful new products the company must recognize its customers, markets and its potential threats like the other competitors in the market.

3.1.2 STAGES OF PLC:-

Stage of Growth: - It is a period of increasing sells but this special period ends soon as the rising numbers of sales work as a magnet, attracting more rivalry into the market. This stage is the most excellent time to bring in new valuable products in the market.

Maturity Stage: - Product reaches its peak at this time which means that the product has achieved substantial gain over its competitors but that doesn’t mean that the mission is accomplished for marketing persons. With so many companies in the market, opposition for customers becomes severe, in spite of the increase in growth rate of sales at the early part of this stage.

Decline: All products not has to go through decline. Many products are there that have not been disappeared from the market since the day they were launched, and that’s because of the constant innovativeness and widespread advertisements. The decline stage arrives when for some reasons the sales start declining. To counter the changes, McDonald’s has incessantly introduced fresh products and has removed out the old ones which were at the decline stage of the PLC. The introduction is timed in such a way that the new product does not negatively impact the product already present in the maturity or growth stage. The secret lies in getting the diverse products in the dissimilar stages of the PLC.

Due to a lot of rivals it has become really tricky for the McDonalds to attract more customers and raise in its business. The saturation stage has come for the McDonald to produce new opportunities of growth and business. It needs to plan a strategy to bring in new and diverse products with reasonable prices in order to draw the customers and again grow in these markets. The other option for McDonald is obvious that is to expand its business in other countries.

LO3.2 Explain how you would use BCG strategy options to evaluate McDonald Restaurant

BCG strategy also known as Boston Consulting Group is a matrix that provides guidance for resource allocation. There is not any strategic marketing approach that is complete without the use of BCG. When the model is used efficiently and efficiently, the BCG model can provide guidance for various resource allocations. No marketing text appears to be wholesome without the use and inclusion of the Boston Consulting Group (BCG) growth-share matrix. Despite of its inherent weaknesses, it is probably one of the most extensively used management tool as far as portfolio management is concern.

McDonalds has grown a lot locally and globally in the past few years. Rival companies have also flooded the market which resulted in growth of the competition. Due to the presence of other competitors and alternative products in the market, the growth opportunities have fallen. They have come to a saturation level in some markets. Being an old, innovative and a strong player McDonalds enjoys a high market share. In order to survive and struggle in these markets McDonald have to speed up its market growth to become a star again. And therefore the company has a need of diversification in its product and a need of a new strategy to devise new products which are unlike from its competitors satisfying the preferences and the nutritional needs of the customers and making these products available to them at economical prices for the victory and profit of its business. McDonald is also focusing on opening more restaurants worldwide in search of new markets and places its impact globally stronger and larger.

LO3.3Investigate and identify the specific strategic marketing objectives of McDonald Restaurant

A marketing plan must be created to meet a clear objective. These can be related to market share, goals, and sales reaching the target customers and creating the awareness in the market.

The long-standing objectives are broken down into the shorter term measurable targets, which McDonalds uses as milestone. The results can be analysed often to see weather objectives are being met. The type of feedback allows the McDonald’s to change plans.

Objectives tells what marketers desire to attain, direct marketing performance and can be used to gauge how well a plan is performing. They can be associated to the sales, market share and creating consciousness in the market.

Profitability

McDonald's is a great corporation it has to remain profitable to stay in business and in order to remain profitable, the company offers excellent products at a price that meets its consumers' demands.

Quality Service

The aim of the company is always to offer fast, competent products at a level-headed price. McDonald's has extended food and beverages containing fruit and vegetables in the menu and has increased awareness of dairy options available for children

Customer Satisfaction

An important objective of McDonald's is Customer loyalty. Customer satisfaction involves marketing, as McDonald's identifies the needs and requirements of its consumers in an efficient way than its competitors. Many consumers choose McDonald's as it has a friendly, inviting atmosphere and the Restaurants offer relaxing seating. Convenience is also an important aspect, as consumers want their food produced in a fast, proficient manner.

Reputable Image

The first McDonald's restaurant was opened in 1954. Since then, they have established more than 30,000 franchising stores in almost 119 countries. It above 47 million people every day, and generates about $15 billion revenues annually. McDonald's wants to frequently advance its image as a pathway to a career.

Community Outreach

McDonald's strives to boost its monetary and volunteer support to Ronald McDonald House Charities. It is involved in many community organizations, schools, and non-profit.

LO4 Be able to respond to changes in the marketing environment

LO4.1 Investigate with EVIDENCE the effect of changes in the external environment on

McDonald Restaurant

Political factors

The global operations of McDonald’s are tremendous under authority of a policy of the separate state put into practice by each government. The Company operates its separate. The definite markets concentrate on various areas of anxiety like various areas of health and environment. All these elements are noticed keenly in the state control of licensing of restaurants.

Economic factors

The organizations in the fast food industry have the separate problems concerning business factors. It is required to take out problems of effects of economic environment. Their problem mainly depends on the answer of consumers to these main principles and how it could affect their general sales. In an estimation of operations of the company, the food chains as McDonald’s be likely to import the largest part of the raw materials to certain territory if there is a delivery lack.

Socio-Cultural factors

McDonald’s indulges a special diversity of customers with definite types of persons. Also it is noticed that the company has given the markets like the United Kingdom. McDonald’s early stages considerably valued set of meal which offers a certain degree of excellence for the corresponding market where it works.

Technological factors

McDonald’s makes a demand for its own commodities. There are some needs that McDonald’s is tending to concern the younger population more. Game stains and also toys in the meal are offered by the company. Other expression of such marketing strategy is noticeable in advertising they use. Operations of McDonald’s have significantly been infused with new technology

Legal factors

Because of these factors McDonald’s is faced to apply more secure examination on their corporate social liability. As a whole it has addressed to necessity of the company to generate its corporate position to a more positive responsible company.

Environmental factor

They may involve charges of harm to environment. Some groups in Hong Kong have made activities to make McDonald’s privileges in Hong Kong conscious of the rather abundant use of containers of prolonged polystyrene and resultant abusing by environment.

LO4.2 Conduct investigation on McDonald Restaurant and analyse the current strengths and

weaknesses in its marketing strategy

Innovative marketing strategies by McDonald’s help the company remain at a growth path as Entrepreneurship is all about turning crazy ideas into profits. The invention of franchising and the growth of some of the most original marketing and branding campaigns has made McDonald's one of the world's most well-known, important brands. The firm has revolutionized the fast food industry and ranked itself as the market leader with low-cost, quality food.

Strengths of McDonald’s

McDonald’s is a strong competitor for all rest restaurants because of its mass, universal extent and popularity.

Diversification of business globally let to reduce or at least to demonstrate the risk of business and find best advantages of different countries economies.

McDonald’s also takes an advantage of a long-term economic growth as a global company.

McDonald’s brand is very strong and easily predictable by competitors.

MacDonald’s has been able to recapture its youth market through aggressive market planning.

Weaknesses of McDonald’s

Intimidating market saturation that may also lead to problems in advertising new products

Fast rising and competitive market due to which company has to face income problems.

The Income problems and large competition do not let the spectrum of manufacture rise into value ones but it makes to expand a range of low-cost and speedily made ones.

McDonald’s is also a low inventive company.

LO4.3Study the trends in the Restaurant market and propose strategic marketing responses to key emerging themes in the market.

Trends in The Restaurant Market 

-Data

 

The biggest restaurant marketing trend is integrating email marketing and advertising teams, data capture and in-depth analysis, public relations etc.

Various restaurants keep data in separate silos. Some even has begun to see silos break down and the appearance of more entirely incorporated communications programs that inform each other to attain a highly clear target market with personalized messaging and provide a vigorous thoughtful of marketing effectiveness.

Signature Items

 

In the past few years there is a rapid increase in chatter on websites, blogs and in traditional media discussing definite dishes versus specific restaurants. This will place more stress on restaurant marketers as they have to make sure signature items are getting sampled by key influencers in order to steal shre from the rivals

-Identifying and Activating Influencers

 

Expert equipments, techniques and word of mouth marketing agencies may be engaged to recognize those individuals who adore about a particular kind of restaurant and are considered as knowledgeable by their social sphere.

Gamification of Loyalty Programs

 

Services based on the location with their badges, titles and rewards will combine with restaurant loyalty programs in order to play a chief role in incentivizing recurring visits and making rewards easier to exchange for diners.

One to One Accessibility

Restaurants generally excel at customer relations. It might look as a daunting task as Consumers today not only want to hear from but also interrelate with the chef directly not with the mediator in the marketing department.