The Necessity of a Marketing Plan for McDonald's - Essay Example

McDonald’s Marketing Plan Contents What is a Marketing Plan? 2 Necessity of a marketing plan 3 McDonalds 3 McDonalds Marketing Principles 3 SWOT (Strength, Weakness, Opportunities, Threat) analysis of McDonalds) 5 Conclusion 7 References 8 What is a Marketing Plan? Marketing is a very important for consistent business growth and development for any business. It is very difficult for a business to survive if it does not have a relevant and authentic marketing plan. From a business perspective, core focus of any marketing plan is to ensure that a business has been able to spot out the potential customers for its business and fulfill demand of its current consumers on a consistent basis. Along with that they should maintain not only a profitable but a long term relationship with the consumer. Necessity of a marketing plan A marketing strategy depicts the strategy of a company and how it can fulfill its business objectives by reaching out to the customers. They can be defined as a set of specific business ideas and actions plans which can help an organization to achieve consumer satisfaction and success in the business in the long run. McDonalds McDonalds is a fast food chain which is preferred by almost every age group across the world. The main source of revenue food McDonalds is sales of fast food items, such as burgers, French fries, soft drinks, milkshakes, and desserts. It has always responded to varying consumer trends and has established itself as one of the most recognized brands in the world. McDonalds Marketing Principles 4P’s of marketing Analysis of McDonald’s marketing strategy shows that it has certainly focused on its target segment and has understood the demand of its consumer market very well. For this reason, the 4p’s of marketing can be applied for the evaluation of McDonald’s current marketing strategy: Product Product includes a company’s method of preparing and producing products which would eventually develop the understanding of every customer regarding that particular company’s product and services. McDonalds in its services and products incorporates distinctive features, which depict the physical and the non physical characteristics of the services and product. As stated by Kincheloe (2002), McDonalds have learned the etiquettes and customs of their customers and have accordingly offered them with such various menus, which are very different to those that are offered by McDonalds to the global market. For instance, in India McDonalds has completely eradicated ingredients like beef, mutton and pork from their menu and as an alternate they offer a vegetarian menu to them and also the cheese and sauce as well which are purely vegetarian. Place Place consists of the delivery channels and the supply chains of the business. It is imperative in McDonald’s business strategy that to have a proper place of its business so that it can offer its products or services to its customers at the appropriate moment, place and also with the appropriate quantity as well so as to enhance its integrity in its customers view. Price A pricing strategy comprises a strategic decrease in the prices of the products or the services by a company, whenever a company wants to offer to its customers, services or products at a discounted price, in order to lure its potential customers. McDonald’s has utilized its pricing strategy very efficiently by offering various particular offers at discounted prices, such as, combo meal, happy meal, family meal and happy price menu, so that they can eventually enhance the total sales of its services and products (Vignali, 2001). Promotion Commercial advertisements play a very vital role to promote companies particular products or services and this is why companies frequently endeavor to design customer oriented commercial advertisements, that is, which could eventually lure the desire of the customers to buy their particular product or service. McDonalds has implemented this important concept smartly and has developed an excellent promotion strategy in this regard. SWOT (Strength, Weakness, Opportunities, Threat) analysis of McDonalds) According to Humphrey (2005), SWOT analysis plays a very important role in critically evaluating the strategic position of a company. Below is the SWOT analysis of McDonalds: Strengths One of the most recognized brand in the world Largest share of fast food market in the world. Presence in almost each and almost every country of the world. The marketing strategy is one of the best which attracts not only children and teenagers but also adults. Weaknesses Lack of quality in some of the franchises across the world. Disruption of healthy eating habits in children and teenagers. Low employee retention. Opportunities Hidden potential of spreading their business in huge untapped markets of Asia, South America and Africa. Change in food preferences of customer groups and consumer habits across the globe. Threats The growth in popularity of rival fast food chains will diminish their demand. People have become way more health conscious by preferring to eat healthy food and avoid fast foods. Analysis of McDonald’s marketing strategy To sustain its tag as the best and most recognized fast food brand in the world, McDonald’s must spread its presence throughout the world and has to simultaneously outperform its fast food rivals (Schröder & McEachern, 2005). McDonald’s brand recognition is the base of competitive advantage and its monopoly in some of the biggest consumer markets in the world has certainly played a decisive factor in maintaining its reputation as the strongest fast food chain in the world. McDonalds has managed its resources accordingly and has fulfilled its customers demand and has been able to maintain its goodwill and value which is consistently depicted in their customer’s demand. Although McDonalds has certainly become a highly successful fast food chain and has maintained a high level of growth and profitability, there is much room for improvement in various important business sectors. Also, it also has to comply with necessary global ethical and professional standards and it must be able to implement all relevant measures which are needed to comply with such important regulations. According to Cummins (2005), by linking some of the most important aspects of food and health, such as a nutritious menu, high level of food quality etc, McDonalds can improve its overall performance in the food market. In addition, it could potentially make itself an undisputed leader not only in the fast food market but could be one of the most respected brands in the entire global food industry and simultaneously, it will also increase its market share, sales, growth, revenues and profitability. Conclusion McDonalds has done well to be recognized as one of the most reputed and one of the most profitable fast food brands the world. It is global brand which has to compete with major fast food brand across the world on a consistent basis. It’s important for its executives, managers and other employees to improve the brand reputation of McDonald as a symbol of success and reliability. References Cummins, S. 2005. McDonald’s restaurants and neighborhood deprivation in Scotland and England. American Journal of Preventive Medicine, 29(4), 308-310. Humphrey, A. 2005. SWOT Analysis for Management Consulting. SRI Alumni Newsletter. Stanford Research Institute. Kincheloe, J. 2002. Sign of the Burger: McDonalds and the Culture of Power. Temple University Press. Schröder, M. & McEachern, M. 2005. Fast foods and ethical consumer value: a focus on McDonalds and KFC. British Food Journal, 107(4), 212-224. Vignali, C. 2001. McDonald’s: think global, act local– the marketing mix. British Food Journal, 103(2), 97-111. Read More