McDonald's Marketing Plan

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  • 3 years ago

McDonald's Marketing Plan

The marketing plan includes an important aspect of market research. For McDonald's, market research will enable the company to obtain accurate information about the different requirements or needs of the target group. Market research will also make it possible for McDonald's to develop a well-designed marketing mix that will satisfy all customers. In a nutshell, the market research for McDonald's will provide a critical and clear idea about the competitors and customers. Therefore, market research will provide McDonald's with key information. Accurate market research is vital when it comes to creating the right marketing mix to ensure customer loyalty. The company faces competition from other players in all its markets. Also, the retail environment, social factors, technological and legal changes, economic, and other elements will affect the success of McDonald's in the market. Conducting market research will identify those factors and then anticipate how they may impact the willingness of people to buy. The buying patterns of people will tend to change as the social attitudes and the economy change. Therefore, the company must identify whether the number of target consumers is shrinking or growing and whether the consumers' buying habits might change in the future (Phillips, 2015).

Market research is essential to identify the needs of their customers. It is important to note that the market has limited customers. As such, it is essential to create a long-term business to retain people after they have become McDonald's customers. Customers are different, and market research will identify those different customer profiles. Using the customer profiles, the company will tailor communication to the needs of the specific groups. It is the needs of customers that will determine where the outlets will be located, promotions to be created, pries to be charged, and the types of services and products to be offered. Meeting the specific needs of the target market will require an analysis of the company's internal marketing strengths. The weaknesses and strengths will be determined, and this will be the starting point to formulate the perfect marketing strategy. A SWOT analysis will be conducted to identify the company's strengths (internal), weaknesses (internal), opportunities (external), and threats (external). Examples of strengths include the brand and detailed market research to find the correct marketing mix.

Weakness should be the fact that the company has been in existence for many years, thus the need to keep innovating. An opportunity for the company includes the increasing number of consumers. Lastly, examples of threats include new competitors and changing consumer lifestyles. Other factors to consider in the marketing plan are marketing objectives and analyzing the four Ps in marketing. The four Ps are product, price, promotions, and place. The product is what the company will offer the customers and how new products will be introduced. Determining the price of products will depend on the perceptions of consumers of value. When it comes to promotions, the methods will include advertising, demonstrations, door drops, loyalty schemes, seminars, exhibitions, telemarketing, direct mail, merchandising, and sales promotions.

Business goals

  • Reduce the current business expenses by changing operations, reducing debt, and using modern technology.
  • Establish a new customer service process.
  • Increase traffic on the company's blog or website.
  • Create new products.
  • Maximize on social media marketing.
  • Improve the company's financial health.
  • Open new outlets.
  • Increase the market share.
  • Create new employee incentive programs.

Marketing goals

  • Increase overall sales.
  • Secure new customers.
  • Retain customers.
  • Increase consumer satisfaction.
  • Launch new products.
  • Increase web traffic.
  • Create brand awareness.
  • Increase revenue.

Target audience

The target audience for this marketing plan is the Generation Z market. This audience comprises people born between 1995 and 2010. These people are true digital natives who have been exposed to mobile systems, social networks, and the internet. In terms of behavior, people belonging to the Z generation tend to value individual expression (Dimock, 2019). They will also avoid labels. They also mobilize themselves for various reasons, in addition to a strong belief in the effectiveness of dialogue to solve various conflicts and make the world a better place. Such kind of behavior will influence how these people view consumption, in addition to their relationship with the company's brand. Therefore, McDonald's must be fully attuned to three key implications for the Z generation. The three implications include consumption as a matter of ethical concern, consumption as the expression of individual identity, and consumption as access instead of possession. Since the Z generation has grown up with social media, the internet, and smartphones, they will be more willing to buy from a brand that has established a strong online community. The preferred brand will also be inclusive and with clear values.

Products

The main products to be offered by the company include:

  • McCafé
  • Breakfast items
  • Desserts and shakes
  • Beverages
  • Snacks and sides
  • Salads
  • Chicken and fish
  • Sandwiches and hamburgers

Mission and Vision Statement

Mission statement- To be the preferred place where our customers can eat and drink.

Vision statement- To move with velocity for the purpose of driving profitable growth and become a better company serving our customers with delicious foods and drinks all over the world.

Marketing Strategy

The marketing strategy suitable for the Z generation will include the following:

Establishing clear mission and values- Before McDonald's can market to the Z generation, it will be vital for the brand to have its mission and values established. For example, this generation will be three times more likely than the older generations to believe that the company has a crucial role in improving the society. Also, the key to connecting with this generation will be to establish the brand's values and then communicating them effectively (Gerhardt et al., 2014).

Being accountable and transparent- The next strategy in the Z generation marketing is ensuring that the company is transparent and taking full accountability in case of any missteps. This generation has no fear about conducting their own research. They will perform a deep dive into the brand's website, go through the social media accounts, and analyze reviews and comments.

Establishing the brand's personality- Engaging and connecting with the Z generation will require abandoning the millennial-focused content. This means minimal imagery and no more sleek. Generation Z wants a brand that is bold, has a strong voice in addition to a personality.

Being entertaining- This is important, especially with the thousands of marketing messages circulating daily on different social media platforms. The question here is how McDonald's will stand out from the rest. An effective approach would be focusing on the social media platforms that have been engaging this generation and creating content specifically tailored for them. People in this generation have great prowess when it comes to filtering content, and the most effective way to capture their attention will be to entertain them.

Building a community- Today, an integral aspect of generation Z marketing is building a digital community. It has been proven that people in this generation tend to be the loneliest. This implies that they are always looking for a way to connect and engage with like-minded people. McDonald's brand can assist in facilitating authentic conversations and connections.

Pricing, Positioning, and Branding

The pricing aspect will specify the price points as well as the price ranges for the company's beverage and food products. McDonald's will use psychological pricing and bundle pricing strategies. With the bundle pricing approach, the company will offer meals and other product bundles at discounted prices, compared to the option of buying the items separately (Olderog et al., 2000). On the other extreme, psychological pricing will be implemented by using prices that seem significantly more affordable to the buyers. For instance, the price may be indicated as $**.99 instead of rounding off the price to the nearest dollar (Singh, 2012). Positioning is another important factor to consider. In terms of positioning, the company has successfully established itself as a family-friendly, low-cost restaurant in the market. They have a narrow scope for a low-cost strategy and customer base. The company has in the recent past broadened its scope to appeal to more consumers. In terms of branding, McDonald's has managed to secure a place in its customers' minds. Each time someone looks at the golden arches, they will instantly recognize the company's logo. Each time someone thinks about the best fries in the world, they will instantly remember McDonald's fries. When a person thinks about the sweetest hamburger, the company will instantly come to their mind.

Budget

Advertising expenses

Description

Estimated

Actual

Difference

Banner Ads

15,000

14,500

1,000

Business cards

1,500

1,400

100

Pamphlets

1,200

1,150

50

Brochures

900

800

100

Newspaper Ads

1,400

1,200

200

Television Ads

1,600

1,300

300

Website

50,000

45,000

5,000

Influencer marketing

100,000

98,000

2,000

Social media Ads

40,000

38,000

2,000

Email marketing

25, 000

24,000

1,000

Employees

30,000

25,000

5,000

Sub total

266,600

250,350

16,250

 

Timeline

Task

Duration

Start

End

Market research

20 days

1st May 2021

20th May 2021

Selecting the market segment

2 days

21st May 2021

22nd May 2021

Selecting services and products

2 days

24th May 2021

25th May 2021

Building customer experience

5 days

26th May 2021

30th May 2021

Setting product distribution channels

2 days

1st June 2021

2nd June 2021

Promotion

10 days

3rd June 2021

12th June 2021

Pricing

3 days

13th June 2021

15th June 2021

Customer service

10 days

16th June 2021

26th June 2021

Monitoring

It is important for McDonald's to have a marketing plan to achieve its long-term goals. It will allow the company to define where they want to be in the market and how they compete with other players in the market (Sabou, 2010). Having a well-designed marketing plan will help McDonald's understand the consumers. Monitoring the marketing strategy will ensure McDonald’s targets the right audience, at the right time, and in the right place. In other words, monitoring the marketing plan from the beginning to the end will enable McDonald's asses it and the minor details. If the marketing strategy is effective, McDonald's will have a competitive advantage over the competitors by deepening knowledge about the target market. Monitoring the marketing plan will ensure McDonald's does not waste its investment. For this case, monitoring will be conducted through activities such as tracking the response of sales both before and after launching the marketing campaign and talking to consumers. Other activities included in monitoring may include return on sales, sales generated, responses generated, reach, cost, the timing of the promotion, and media used.

References

Clements, P., & Bass, L. (2010). The business goals viewpoint. IEEE Software, 27(6), 38-45.

Dimock, M. (2019). Defining generations: Where Millennials end and Generation Z begins. Pew Research Center, 17(1), 1-7.

Friedman, L. (2016). 13. Psychological pricing in the food industry. In Prices (pp. 187-201). University of Pennsylvania Press.

Gerhardt, S., Hazen, S., & Lewis, S. (2014). Small business marketing strategy based on McDonald's. ASBBS Proceedings, 21(1), 271.

Hinterhuber, A. (2019). Implementing pricing strategies. Pricing Strategy Implementation, 11-21. https://doi.org/10.4324/9780429446849-2

Olderog, T., & Skiera, B. (2000). The benefits of bundling strategies. Schmalenbach Business Review, 52(2), 137-159.

Phillips, A. (2015). What is market research? Market Research Handbook, 37-60. https://doi.org/10.1002/9781119208044.ch2

Sabou, F. (2010). The marketing plans. Studia Universitatis Vasile Goldiş, Arad-Seria Ştiinţe Economice, 20(2), 292-298.

Singh, M. (2012). Marketing mix of 4P's for competitive advantage. IOSR Journal of Business and Management, 3(6), 40-45.

Zentes, J., Morschett, D., & Schramm-Klein, H. (2011). Retail branding and positioning. In Strategic retail management (pp. 179-200). Gabler Verlag.

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