Table of Contents
2.0 Analyse the STP strategy of McDonald’s UK.
3.0 Examine McDonald’s marketing mix (4ps)
4.0 Assess McDonald’s relationship marketing strategy with an emphasis on their current tactics
5.0 Recommendations on how McDonald’s can improve its marketing strategy.
Jobber (2019) stated that Marketing is one of the important tasks of business because the only production can’t bring the main targets of the business organization. After production, the main task of the business is to offer and place the products in the market to the ultimate customers. The marketing functions are very significant for the business because the profitability and customers relationship depends on the effective marketing strategy (Vogt, 2019). Marketing is a process of offering goods and services to the customers and create a strong and loyal relationship with the customers. Bhardawaj (2019) stated that Marketing management depends on some strategies like marketing mix strategies, market segmentation, targeting and positioning strategy, Porter’s Generic Strategies and Ansoff’s growth strategies. These strategies help to determine the market position and assist in developing a good marketing policy for increasing product quality, pricing strategy and effective promotional facility.
The effective management of marketing helps the business firm to establish a competitive edge in the market (Kotler and Armstrong, 2018). Brand loyalty and image also depend on marketing management. Additionally, in this pandemic situation, marketing management has a significant impact on business and customer relationship management. For this reason, this paper explains the marketing management models, strategies and policies of a renowned company operated as McDonald’s. The first section of this report contains the information related to the Overview of McDonald’s the UK, Company vision and mission, aims and objectives and purpose of this paper. The second section of the report analyses the STP strategy of McDonald’s UK that includes the Segmentation, Targeting and Positioning strategy. The third section of this report examines McDonald’s marketing mix that product, place, price and promotion strategy. The fourth section of the report identifies McDonald’s relationship marketing strategy with an emphasis on its current tactics. This section contains the relationship Marketing, model and the evaluation of the McDonald’s relationship marketing strategy. The fifth section of the report includes the recommendations for McDonald’s by which they can improve their marketing strategy and marketing mix by following Porter’s Generic Strategies and Ansoff’s growth strategies.
1.1Overview of McDonald’s UK
Mc Donald’s is regarded as one of the largest fast-food restaurants all over the world. This company has 32000 restaurants throughout more than 100 countries (McDonald’s Annual Report, 2019). The quality of foods and services of this company are different from the competitors by which this company has highly popular in the market. The foods of this restaurant are produced and developed features on the basis of customers’ demand. The physical appearances of most of the restaurants are well decorated and this company has operated a franchising system to enter the global market (McDonald’s, 2020). This company normally offers breakfast foods, adult food, kids’ zone, and demanded food of the customers.
1.2 Company vision and mission
The vision is the long-term and sustainable goal of the business. Every business firm needs to make the vision for implementing long-term plans and attaining the vision of the company (Morgan, 2018). On the other hand, the mission is the short-term goal of the business. Every business firm needs to make a mission for implementing short-term plans and attaining the mission of the company. The main vision of Mcdonald’s is to spread the restaurant business all over the world with the leading market share and growth (McDonald’s, 2020). On the other hand, the main mission of Mcdonald’s is to provide quality foods to the customers for increasing the profitability level (McDonald’s, 2020).
1.3 Aims and objectives
The aim of McDonald’s UK is to gain sustainable competitive advantages along with high performance and productivity. The key objectives of McDonald’s are:
- To increase 15% of revenue by the end of December 2021
- To enhance 5 % of gross profit by the end of December 2021
- To improve 2% net profit by the end of December 2021
- To increase customer satisfaction up to 90% by the end of December 2021
- To bring improvement in its website and online selling 2021
- To reduce at least 10% waste and greenhouse gases by 2021
1.4 Purpose of this paper/report
The main purposes of this report include the evaluation of the Segmentation, Targeting and Positioning strategy, examination of McDonald’s product, place, price and promotion strategy, evaluation of the relationship marketing strategy and recommendation to McDonald’s for improving their marketing strategy. This paper also helps to understand the importance of marketing management to increase the brand image and loyal customers of the business.
2.0 Analyse their STP strategy of McDonald’s UK
The STP strategy stands for Segmentation, Targeting and Positioning strategy of the business (Crawford, 2018). This strategy helps to divide the market and target the most potential customers and ensure a suitable position in the market. In the case of McDonald’s, this strategy has a significant impact on the market and business development.
Market segmentation is one kind of classification or categorized technique of market and customers. Crawford, L. (2018) stated that it can be done by considering demographic characteristics and customers’ needs and demands. McDonald’s has segmented the market on the basis of the demands and needs of the customers. This company has segmented its products for breakfast purposes, adult food, kids’ zone, and demanded food of the customers. McDonald’s has segmented their market on the basis of age, religion, gender, income and taste of the potential customers. The market segmentation system of McDonald’s is as follows…………………..